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In this issue:

• From Anthony's Desk
• Income tax season just around the bend
• Take another small step toward savings
• Looking ahead to tax year 2024

From Anthony's Desk

Notes from ORS Director Anthony Estell

Welcome to your December 2023 issue of the Proactive newsletter.

One of our goals at the Michigan Office of Retirement Services (ORS) is to provide you with retirement information that is timely and relevant, to help you achieve financial security in retirement.

In our September issue, we debuted our first Ask Our Experts video on the ORS YouTube channel. In this issue we offer one more. The videos expand our communication efforts beyond this newsletter and our social media posts. They are hosted by our own ORS customer service representatives.

We plan to do more. Do you have a general question for our experts? If so, please send those to us at ORS-Outreach@michigan.gov.

On another front, we finished our activities for National Retirement Security Month in October in concert with our partner, Voya Financial. We had a variety of presentations and webinars, including some from the Social Security Administration.

While I, of course, would argue that every month is retirement security month, the national event gave us all an opportunity to review our goals, and adjust or revise our plans to meet them. As always, seek to strike that balance between a successful today and a secure tomorrow.

Thanks to the many of you who participated in our events. More than 36,000 opened our weekly tips and suggestions in emails. Nearly 600 took part in our in-person and online conversations. Another 600 made one-on-one appointments with Voya to delve further. That doesn’t include all who engaged with us on our website, social media channels, watched our videos, or called or emailed.

We know that retirement is a journey. We are here to help you navigate yours.

Anthony Estell, director
Michigan Office of Retirement Services

Income tax season just around the bend

The season begins in late January 2024, when the IRS starts to accept and process 2023 federal tax returns.

The due date for employers to send IRS W-2 and W-3 forms is Jan. 31, 2024, although you might not receive them by then.

Federal, state, and local income tax returns for 2023 must be filed by April 15, 2024.

Prepare by gathering and organizing your tax records. Make sure you’ve withheld enough tax. If you don’t use a bank account or credit union, get one so you can have your tax refund deposited there for free. Donate to charity by Dec. 31, 2023.

Here are some mistakes to avoid when filing:

• Filing too early. Wait to file until you receive all tax reporting documents or you might risk a processing delay.
• Misspelled names and missing or incorrect numbers. All taxpayer and dependent names listed on tax returns should match the names and numbers on their Social Security cards or their Individual Taxpayer Identification Number.
• Inaccurate information. Taxpayers need to enter any wages, dividends, bank interest, and/or other income received along with credits and deductions.
• Change of filing status.

The IRS offers information on getting ready and refund frequently asked questions. For more information, visit the IRS website.

The Consumer Financial Protection Bureau also provides a federal tax-filing guide. As always, make sure you know where to go for tax help and understand the federal Taxpayer Bill of Rights.

Michigan residents – full-year and part-year – and tax filers can find more information about state taxes and returns from the Michigan Department of Treasury.

Take another small step toward savings

Taking small steps absolutely matters, especially when it comes to retirement savings.

The Small Steps campaign, conducted annually by the Michigan Office of Retirement Services (ORS) and Voya Financial, helps public school, State of Michigan, and Michigan State Police employees with defined contribution plans better prepare by increasing their retirement savings rate.

Small Steps increases elective contributions by 1% annually in March until the participant reaches a contribution rate of 15% of their gross income. Since 2019, 4,715 got increased to the 15% target rate and another 3,944 did so on their own.

Even at the target rate, though, you may find you need more savings to build enough income in retirement. You also need to plan for healthcare and emergency expenses.

To adjust your retirement savings rate, log in to your State of Michigan 401(k) and 457 Plans account or call Voya Financial at 800-748-6128.

Looking ahead to tax year 2024

Now’s a great time for you and your household to get prepared for the 2024 tax year.

The IRS has announced tax year 2024 annual inflation adjustments for more than 60 federal tax provisions, including tax rate schedules and other tax changes.

The standard deductions for every type of tax filer (individuals and married filing separately, married filing jointly, and head of household) will increase in 2024. Tax brackets will shift as well, so some people may find themselves in a lower tax bracket next year.