Wall Street opened the month on a high note, with each of the benchmark indexes advancing. A stronger-than-expected jobs report and solid fourth-quarter corporate earnings data helped support equities. Nevertheless, concerns about the Russia-Ukraine situation began to worry investors. Natural gas and crude oil prices climbed higher. Throughout much of February, the impending crisis in Eastern Europe seemed to displace thoughts about a likely interest-rate hike from the Federal Reserve in March.

Then on Thursday, February 24, Russia launched attacks against multiple strategic targets in Ukraine. The United States, European Union, United Kingdom, Germany, Canada, Australia, and Japan responded to the Russian incursion by imposing sanctions mostly targeting Russian banks, oligarchs, and high-tech sectors, along with travel restrictions. The conflict shook global financial markets as stocks plunged. Oil and gas prices surged globally amid concerns that heating bills and food prices would skyrocket. Brent crude oil prices reached $100 per barrel. The invasion heightened the pressure on a global economy already reeling from snarled supply chains and the highest inflation in years.

5 Tax Season Reminders for Advisors

With tax season in full swing, now is a prime opportunity to initiate proactive conversations with your clients about their comprehensive financial goals and the critical role tax planning can play as a part of their long-term financial success. We encourage you to work collectively with their CPAs or accountants as it makes sense to help ensure their investments and tax strategies are aligned to strengthen the value and relationships you are creating. Here are 5 reminders to keep in mind this tax season:

1. IRS Deadline
Monday, April 18, 2022, is the IRS mandated deadline for most individuals filing federal taxes this year due to April 15, Emancipation Day, being a recognized holiday in Washington, DC. However, please note that taxpayers in Maine and Massachusetts have until April 19, due to the observance of Patriots’ Day in those states.

2. IRA Contribution Limits
Clients have up until April 15, 2022, to make 2021 IRA contributions for themselves or a spouse. The 2021 limit for annual contributions to Roth and traditional individual retirement accounts (IRAs) stands at $6,000 per individual. For clients aged 50 and above, the limit extends to $7,000. Before you submit a contribution request, ensure your client has moved funds to the appropriate bank account to avoid rejects. Allow proper time for processing these funds as well to avoid missing this deadline and having contributions being counted as 2022.

3. 1099 Tax Forms
1099s for accounts held at TD Ameritrade are now available online (if issued). Clients who have obtained them online have the option of either printing the forms, saving them or emailing them to tax preparers.

4. Schedule K-1
Please note, investors in the Vantage 3.0 Alternative Model will receive a K-1 for the tax year 2021. They are available online and were sent out by the end of February.

5. Coronavirus-Related Distribution & Stimulus Reminders
Taxpayers who took a Coronavirus-related distribution (CRD) from their retirement account and opted to have the distribution taxed over three years will report the amount that is taxable in 2021 on Form 8915-F.

Also as a reminder to tax payers that received a third stimulus check payment in 2021, the IRS sent out Letter 6475 in January 2022. This letter states the amount of this third stimulus payment received. Clients will need to retain this letter for their records and provide it to their tax preparer with other tax documents to prepare 2021 tax returns accurately.

Global Investment Performance Standards (GIPS) are a set of voluntary standards used by investment managers word wide to help ensure the full disclosure and fair representation of investment performance. Beacon Capital Management has recently received it’s 2020 GIPS Compliance Certification, which can be viewed here:
BCM 2020 Compliance Presentations
We anticipate receiving the 2021 certification by the end of the Q3 2022.

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