Source: Smart Asset
US Tax Day Approaches:
Invest In Your Sustainable Future
The IRS extended Personal Tax Filing to May 17;
contribute to your tax-deferred IRA before then
As we reflect on last week’s Earth Day, and reflect on US President Biden’s address to the nation urging investment in sustainable infrastructure, we continue to focus on a sustainable future. Where might we be 1 year from now, 5 years, 10 years, 40 years?
Will we all drive electric cars? Will those cars fly?
Will we still mine for coal? Or only harvest sun, wind, and water energy?
Will we fly with organic jet fuel?
Will our buildings be painted with solar paint?
Our economy is evolving, today’s extractive industries need to innovate or be left behind, and regenerative approaches are necessary for survival of our planet and people. This tax season consider investing in portfolios positioned for our future.
Consider contributing to your tax-deferred Individual Retirement Account (IRA) to reduce your taxable income today, and allocate to higher impact, more sustainable investment strategies and portfolios — up to $7000 for IRA contributions, depending on your age.
Our partners with HIP Investor in The Impact Community (TIC) might serve your goals for investing and impact — available online, in an investing app, or through local financial advisors:
THE IMPACT COMMUNITY
of High-Impact Portfolio Managers
and Impactful Investment Firms
Why should you contribute to an IRA account?
Contributing to an IRA (Individual Retirement Account) allows an individual to save for retirement with tax-deferred growth. With HIP’s Great Place to Work strategy, or HIP’s Fossil-Fuel Free Diversified Portfolios, your investing can be allocated towards a more positive sustainable future. For IRAs, you can invest $100 and up at OpenInvest, and $1000 and up at Newday.
Saving for Your Future with an IRA
Did you contribute to your IRA previously?
Only 14% (or 1 in 7) of households contribute to an Individual Retirement Account in any given year.
Typical IRA contributors compared to non-contributors are more likely to be white, have a college education, and contribute to a 401(k) workplace retirement plan, according to a Center for Retirement Research at Boston College study
Through the OpenInvest app ($100 and up) or the Newday app ($1000 and up), it is easier for you to participate. If you can contribute, you can allocate to impact investing to potentially reduce your taxable income.
Too many American families are ill-equipped to deal with their financial needs during retirement. If younger people begin saving for retirement earlier, they can be better prepared as they approach their retirement years.
Always check with your tax expert or accountant, but here are some things to keep in mind*,
Current IRA Rules
- The annual contribution limit for Traditional IRAs for both 2020 and 2021 tax years is $6,000 (or $7,000 for those 50 and older to help catch up).
- There is an IRS penalty for withdrawals prior to age 59 1/2 with limited exceptions. Here is a link to the IRS website. (IRS)
- For example, new parents are allowed to withdraw up to $5,000 without a 10% early withdrawal penalty as long as funds are withdrawn within a year of the birth or adoption of a new child.
Invest responsibly while saving for your retirement.
- Contribute to your IRA for 2020 before May 17th, 2021, and follow up with a direct contact so you can fill out an electronic form to affirm your tax year of 2020.
- Contribute to your IRA for 2021 all year
- Open an IRA account if you don’t have one yet to invest impactfully, including HIP Strategies
- There may be additional fees if you close your IRA account.
*These are the current regulations. The IRS rules may change and you should check with your tax adviser, and learn more here. (IRS)
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Order today, this book is a great GIFT for clients, Board members, co-workers, advisors, and friends:
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Equality in 2021: In The HIP Investor book and methodology, the Equality Pillar is one of 5 categories necessary for investments to build a better world. By investing in companies and municipalities that are supporting equal rights and opportunity, you are owning part of the solution. And knowing what you own and the impact your investments have is not only financially more responsible, but also the right thing to do — for everyday investors, investment advisers, fund managers, 401(k) managers, and any innovator or leader today.
Read and share the HIP Investor book (text book, e-book, audio-book) today.
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