As we exit April showers, let’s hope to get some May flowers!
Tax season is officially behind us, and we’re grateful for the trust our clients and community place in us. If you have any questions, feel free to reach out, and our team will be happy to answer them.
Thank you for being here, and we look forward to staying connected throughout the year ahead.
Upcoming Dates
May 10th:
–Mother’s Day offers an opportunity to honor the mothers, who enrich our lives through love, guidance, wisdom, and unwavering support. Extending warm wishes to you and your family.
May 21st at 5pm:
–How to Maximize Social Security Benefits Join us for a virtual presentation with guest speaker, Mary Beth Franklin, CFP® RetirePro, LLC., a recognized retirement income expert and one of the country’s leading experts on Social Security & Medicare. Click here to learn more and RSVP.
May 25th: *Office Closed*
– Memorial Day offers a time to honor and remember the men or women in our armed forces who gave their lives in service to our country. Their sacrifice, courage, and dedication to protecting our freedoms deserve our deepest respect and gratitude.
June 15th:
-Quarterly Tax Deadline covers income earned from April 1st through May 31st for business owners. By submitting on time, it can help you avoid being charged with interest or penalties and keep your projected tax liability on track for next year!
Higher Student Loan Payments on the Near Horizon
The Department of Education recently announced that student loan borrowers who were awaiting loan forgiveness decisions will soon need to select a new repayment plan due to final determinations by the Supreme Court.
Current Situation:
The SAVE Plan was a federal student loan repayment program introduced in 2023 by the former White House administration to lower borrowers’ monthly payments and expand pathways to loan forgiveness before being struck down by a federal court. According to the Department of Education, federal loan servicers will start issuing notices to borrowers on July 1 with instructions on how to transfer their loan balance from the SAVE Plan to one of the newly-approved repayment options. Borrowers will have a 90-day deadline to enroll in a new repayment option. (Servicers will notify borrowers of their specific 90-day deadline.)
Tips to manage the change:
- Get familiar with your options. Borrowers currently enrolled in the SAVE Plan have approximately 6 months until their first payment under a revised repayment plan is due. Consider taking the next several weeks to learn about the different repayment options and which one fits best with your current financial situation.
- Compare income-driven options carefully. Not all plans calculate payments the same way, and small differences in how income is defined can lead to big changes in your monthly bill. Look closely at how each plan treats discretionary income, family size, and forgiveness timelines before deciding.
- Update your income and household information. Make sure your loan servicer has your most recent financial details. If your income has dropped or your family size has changed, you may qualify for a lower payment under a new plan.
- Don’t wait until the deadline. You’ll have a limited window to choose a new repayment plan once notices go out. Submitting your application early can help you avoid processing delays, missed payments, or being automatically placed into a plan that may not be the best fit.
- Consider making interest-saving moves now. While your loans may still be in forbearance, any voluntary payments you make can go directly toward your principal. Even small amounts paid now can dramatically reduce the total interest you’ll pay once regular repayments resume.
- Explore forgiveness and employer benefits. Some borrowers may qualify for programs like Public Service Loan Forgiveness, or can receive help through employer student loan repayment benefits. It’s worth checking eligibility now so you can align your repayment plan with any long-term forgiveness or assistance opportunities.
- Act like a banker. Remember, more money is made by the lenders when they get you to delay and lower your payment as much as possible. In fact, most interest earned on these loans happens in the first half of repayment. KNOW THIS and act accordingly. A good strategy might be to lower your monthly payment and then use the payment savings to front load principal payments.
- Find the loan crossover point. This is the point where more of your monthly payment goes toward principal rather than interest. If you haven’t reached yours, get there with a sense of urgency. A tremendous amount of interest expense can be saved for every dollar you pay down on the loan prior to this point.
Finally, remember to run a monthly amortization schedule based on your planned repayment to understand how much interest you’ll pay over the life of the loan AND on each payment. This will allow you to move from a defensive posture to one of managing your loan to your advantage.
Retirement Catch-Up Contribution Rules Have Changed!
Retirement savings rules shifted again this year, and if you’re age 50 or older, this change may affect how you’re making retirement contributions in 2026.
Under the SECURE 2.0 Act, individuals who earned more than $150,000 in the prior year are now subject to new rules for “catch‑up” contributions—the extra amounts you’re allowed to save once you reach age 50.
What’s changed in 2026?
Catch‑up contributions for higher earners must now be made to a Roth account (401(k), 403(b), or 457(b)), meaning contributions are after tax. This rule applies only to catch‑up contributions; your regular salary deferrals can still be pre‑tax or Roth, depending on your plan.
Why it matters:
If you previously relied on catch‑up contributions to reduce taxable income, this change could increase your current‑year tax bill. The tradeoff is that Roth contributions grow tax‑free, and qualified withdrawals in retirement are also tax‑free.
Important to know:
If your employer’s retirement plan does not offer a Roth option, higher‑income employees may be unable to make catch‑up contributions until the plan is updated.
In addition, individuals ages 60–63 now have access to a higher catch‑up contribution limit under SECURE 2.0.
If you’re unsure how these changes impact your retirement or tax planning, it’s a good time to review your strategy.
Post Tax Season Fraud And Refund Issues
The weeks following tax season often see a rise in scams and irregular activity related to tax filings and refunds. If you receive anything that looks suspicious, contact us.
Be mindful of the following:
>Refund Scams- Fraudsters may contact you claiming there is an issue with your refund or that additional information is needed to release it. Do not engage. Instead, contact us if you have questions.
>Phishing attempts- Emails or test messages designed to look like official tax communications may ask for sensitive, personal, or financial information. Again, Do NOT engage.
>Unexpected account activity- If you receive notices about filings or refunds that you did not initiate, it is critical to act quickly by contacting our office.
What Business Owners Should Be Doing Now
For Business Owners, freelancers, and individuals with non-wage income, the next estimated tax payment is due June 15th. Proper planning before this deadline is key. Some suggestions to avoid this are below:
Reviewing year-to-date income and expenses to ensure that your estimated payments reflect your current financial position.
Adjusting for changes such as new clients, increased revenue, or unexpected costs.
Setting aside funds consistently to avoid cash flow strain when payments are due.
Revisiting prior estimates to confirm they are still accurate.
All in all, underpaying can result in penalties, while overpaying may unnecessarily restrict your cash flow. A quick review now can help strike the right balance. Contact us if you need any help, or have questions.
After Tax Season: What Your Numbers Are Trying to Tell You
For many, tax season feels like the finish line. Once returns are filed and reports are submitted, it’s tempting to move on and not look back. But in reality, this is one of the best times of year to pause and evaluate what your financial data is actually saying. Your numbers aren’t just for compliance; they’re a diagnostic tool. Whether you’re an individual, business owner, nonprofit leader, or part of a government entity, the information you’ve just reported can reveal patterns, risks, and opportunities that are easy to miss during the rush of filing deadlines.
For Individuals, your tax return can highlight trends in your personal finances:
- Are you consistently receiving large refunds or owing significant amounts? This may indicate your withholding needs adjustment.
- Are you carrying more debt year over year?
- Are you contributing enough toward retirement or long-term savings?
Small adjustments now can make a meaningful difference by the end of the year.
For Businesses, post-tax season is an ideal time to evaluate operational performance:
- Is your business showing a gap between profit and actual cash flow?
- Have certain expenses increased faster than revenue?
- Were there deductions you missed or areas where spending could be more efficient?
Looking closely at these areas now allows you to make corrections before mid-year.
For Nonprofits, financial reporting plays a key role in transparency and sustainability:
- How balanced are your program versus administrative expenses?
- Are you relying too heavily on a small number of donors or funding sources?
- Are restricted funds being tracked and reported accurately?
Identifying these issues early helps maintain compliance and strengthens long-term stability.
For Government Entities, financial data helps ensure accountability and effective planning:
- How do actual revenues and expenses compare to your budget?
- Were revenue projections accurate, or do they need adjustment?
- Are there early signs of fiscal stress that should be addressed now?
Proactive review supports better decision-making throughout the fiscal year.
All in all, turning insight into action. Tax and reporting season shouldn’t be viewed as an endpoint, but rather a starting point. The insights gained from your financial data can help guide smarter decisions, improve efficiency, and reduce risk moving forward. Taking the time in May to review and respond to what your numbers are telling you can set the tone for a stronger, more controlled financial year.
Planning Ahead: Setting Yourself Up for Next Year’s Sucess
The most effective tax strategies happen well before year-end. Taking a forward-looking approach now can significantly improve your outcome next filing season.
Key areas to focus on:
Organized recordkeeping: Maintain clear, consistent documentation of income, expenses, and receipts throughout the year
Strategic timing: Plan when to recognize income or make large purchases, especially if you are self-employed
Retirement contributions: Evaluate opportunities to reduce taxable income through qualified accounts
Ongoing check-ins: Periodic reviews allow for adjustments based on changes in income, business performance, or personal circumstances
The advantage of early planning:
Instead of reacting to your tax situation, you gain the ability to shape it—minimizing surprises and maximizing opportunities.
What We’ve Been Up To
After another busy tax season, our Grand Rapids area team members took a well‑deserved break to celebrate together, and what a night it was! We kicked things off at SILVA, enjoying delicious appetizers, great conversation, and some competitive games of bocce. The celebration continued at The B.O.B., where the energy shifted from competitive to courageous as team members took the stage for karaoke. Meanwhile, our Fremont team opted for a more adventurous way to unwind, heading to Smash & Slash Axe Throwing. From impressive vocals to axes flying, these are fun reminders that our team’s talents extend well beyond the office. Events like these are a great reflection of the strong connections we build, not just through our work, but by taking time to celebrate our wins together. Stay tuned to see what our other offices have been up to as they mark the end of tax season.
What We’re Working On
We’re continuing to expand and refine our integrated business advisory services for growing companies.
- Accounting
- Tax Planning / Preparation
- IT strategy / Consulting
- Wealth Management
- Auditing
We provide proactive, tailored guidance designed to support your business goals.
The result is clearer insight, fewer surprises, and greater confidence as you navigate today’s complex financial decisions.
To Be Noted:
We send this monthly newsletter to keep you informed and connected with our team. It’s also a chance to share a bit of the personality behind H&S Companies. Look for it in your inbox around the first Wednesday of each month, with timely updates, upcoming webinars, and behind-the-scenes highlights. You can always find it on our website as well.
If you have received our newsletters in the past, and have unsubscribed from our content, you may need to unsubscribe again due to a new email marketing platform. No hard feelings, we understand that inboxes can get overwhelming.
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