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Tax season often comes with a mix of stress and opportunity. While filing can feel overwhelming, a tax refund or a clearer picture of your finances can also be the perfect moment to reset and strengthen your savings.

If you are receiving a refund this year, it can be tempting to spend it quickly. Before you do, consider how putting at least a portion into savings could support your goals throughout the year. Even a modest amount can help create a cushion for unexpected expenses or future plans.

One smart approach is to start or boost an emergency fund. Setting aside money for unplanned costs like car repairs or medical bills can help prevent the need to rely on credit later. Many financial experts recommend working toward three to six months of essential expenses, but any step in that direction is progress.

Tax season is also a great time to think about short-term goals. Saving for a vacation, home improvement project, or upcoming tuition payment can reduce stress and make those milestones more manageable when the time comes. Parking funds in a separate savings account can help keep those dollars on track.

Finally, reviewing your tax return can offer insights into your overall financial picture. Are you getting a large refund each year? Adjusting your withholdings could mean more take-home pay throughout the year that you can intentionally save or invest. Small changes now can lead to stronger financial habits long after tax season ends.

As spring approaches, think of tax season as more than a deadline. It is an opportunity to refresh your finances, build savings, and set yourself up for a more confident year ahead.

If you would like help choosing a savings option or setting financial goals, your local credit union team is always here to help.

Simple tips to help you stretch your dollars further.

At AllCom Credit Union, we know that saving money doesn’t always require big changes—it’s the small, everyday habits that can make a big difference over time. Here are a few smart life hacks to help you keep more money in your pocket:

1. Automate Your Savings
Set up automatic transfers from your checking to your savings account—even a small weekly amount adds up fast. Out of sight, out of mind, and into savings!

2. Meal Prep Like a Pro
Plan meals for the week, shop with a list, and cook in batches. You’ll save money by avoiding takeout and reduce food waste.

3. Use Cashback & Coupon Apps
Download apps like Rakuten, Ibotta, or Honey to earn cash back and find coupon codes for everyday purchases, from groceries to online shopping.

4. Cancel Unused Subscriptions
Take a few minutes to review your subscriptions and cancel any you don’t use. Those small monthly charges can quietly add up over time.

5. Brew Your Own Coffee
We’re not saying skip your morning pick-me-up—just try making it at home. A daily coffee shop run could be costing you over $1,000 a year!

6. Review Your Bills Annually
Call your service providers—like internet, cell, or insurance—and ask if better rates are available. Loyalty doesn’t always mean you’re getting the best deal.

Smart money habits start small, but they can lead to big savings. Need help setting up a savings plan or want to explore budgeting tools? Our team at AllCom Credit Union is here to help!

Keeping your contact details current ensures you can fully benefit from AllCom Credit Union’s services and stay informed about important updates. Plus, outdated information could mean missing a critical email or advisory.

Here are three key reasons to update your contact information today:

1. Enhanced Fraud Protection:

   With the rise in online transactions and card-not-present purchases, fraudsters are always looking for vulnerabilities. Providing AllCom with your updated contact details helps us alert you quickly about any suspicious activity and take swift action to protect your accounts.

2. Secure Delivery of Confidential Information:

   A USPS change of address doesn’t guarantee that your account statements or other sensitive documents will be forwarded. Ensure your financial information stays confidential by updating your contact information directly with us.

3. Stay Informed:

   Don’t miss out on important updates, reminders, and time-sensitive notifications—especially if you’ve gone paperless. Keeping your contact information up to date ensures we can always reach you when it matters most.

Updating is quick and easy! Visit us in person or give us a call at 888-754-9980 to make sure we have your latest information.

The new year often comes with the tradition of formalizing goals for the coming months. In a study by Forbes, 38% of adults surveyed said their top New Year’s resolution was improving their finances. This stat comes as no surprise, as financial goals are often tangentially tied to many other aspirations on our list.

Let’s dive into some financial New Year’s resolutions that are easy to achieve and stick to for the long haul!

1. Build a budget that prioritizes savings

If you’re part of the 38% of Americans prioritizing saving this year, you should know a few key things before you start. First, keep your goal attainable!

The best way to keep your savings resolution is to automate it. Start by picking a budget that prioritizes saving first. The zero-balance budget is a method of managing money where every single penny of your paycheck is accounted for. This type of budgeting lets you consistently automate your savings on payday.

2. Step up your retirement contributions

If the start of the new year also means performance reviews at your workplace, this goal is easy to tackle! Retirement savings is one of the most important long-term financial goals you can work toward.

Experts recommend increasing your 401(k) contributions by at least 1% annually. If you receive a 3% raise, try increasing your retirement contributions by 1%. You’ll still be getting a 2% raise every paycheck and setting yourself up for success to live a comfortable life when you retire.

3. Commit to improving your credit score

Have you ever taken a deep dive into your credit report to see if everything is correct? If you answered no, this is your year to familiarize yourself and better understand what impacts your credit score.

It’s essential to know more than just your credit score. Monitoring your credit report once a year will bring you peace of mind and help you spot any potential fraud issues before they spiral out of hand. Remember, you can access one free credit report—which includes your FICO (Fair Isaac Corporation) score—every year at freecreditscore.com.

4. Assess your finances for extra saving opportunities

Saving more than you already are can sometimes feel like a stretch. Assessing your monthly spending habits can uncover extra saving opportunities you may not even realize you had!

5. Make extra payments to eliminate debt

Do any of your financial resolutions involve paying down debt faster? Commit to putting “extra” money that comes your way to paying down student loans, credit card debt or your mortgage. Prioritize paying off the debt with the highest interest rates first.

One of the most anticipated moves by the Internal Revenue Service every year is the new limits on funding retirement accounts. The new contribution limits reflect cost-of-living increases over the last year.

The IRS recently announced that the contribution limits for 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan will increase to $23,000 in 2024, up from $22,500 in 2023.

The IRS also announced that contributions to IRAs will increase from $6,500 in 2023 to $7,000 in 2024. The IRA catch up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 to include an annual cost of living adjustment but remains $1,000 for 2024. Taxpayers can deduct contributions to a traditional IRA (not a Roth IRA) if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income.

As the leaves change colors and the air gets crisper, fall is certainly in the air. Fall is the perfect time to take a closer look at your money matters and make some smart financial moves. Here are some fall finance tips to help you stay on track.

Review your budget and expenses

Where is your money going? Do you need to adjust your budget to make room for certain things, or cut back on others? Fall can bring different spending patterns with holidays and back-to-school costs, so it’s a good idea to adjust your budget accordingly.

Plan for holiday expenses

As the year winds down, it’s a good time to think about year-end expenses. This includes holiday gifts, travel plans, and any tax-related actions you need to take. Planning ahead can help you avoid extra stress come December.

Check on your credit

Take a moment to check your credit report. Reviewing your credit for errors or discrepancies can help you maintain good credit.

Get ready for open enrollment

Fall often means open enrollment for employee benefits. Review your health insurance, retirement plan, and other benefits to ensure you’re making the most of what your employer offers.

Winterize your home

Before the winter frost sets in, take a moment to seal cracks and gaps in your home. It’s like bundling up in a warm scarf for your home. Proper insulation can help keep the cold out and keep your heating and energy bills low.

Save for emergencies

Fall storms and unexpected expenses can happen. Make sure you have an emergency fund to cover unexpected costs. If you don’t have one, consider setting up small automatic transfers to build your savings.

Prepare for tax season

It’s never too early to start preparing for tax season. Organize your financial documents, such as receipts and records of deductible expenses. It’s a good idea to check how much money is left in your FSA account if you have one, too. Consider making any year-end contributions to retirement accounts.

Declutter and sell

Everyone always emphasizes spring cleaning, but fall is also a great time to declutter your home. Consider selling items you no longer need online or through a garage sale. The extra cash can boost your savings or help you pay down debt.

The City of Worcester is currently replacing sidewalks on Park Ave directly in front of our building.

The AllCom drive-up will be closed Friday, October 7^th through Monday, October 10^th. The branch lobby will remain open with the exception of Monday, closed in observance of Indigenous Peoples’ Day. The branch parking lot and lobby will be accessible only via Pratt Street.

The drive-up ATM will be accessible by walk-up only. Please plan in advance for teller transactions or use remote services, if possible.

If anyone needs assistance during this time, please call us at 508.754.9980 to coordinate and we will be happy to assist.

We apologize in advance and thank you for your patience.

For the first time since 2002, the Internal Revenue Service has updated its Uniform Lifetime Table and lowered the size of RMDs. The new tables, which now project longer lifespans, are used to calculate RMDs from individual retirement accounts, 401(k)s and other retirement savings vehicles each year. This means that starting in 2022, retirees can keep more money in a tax-deferred retirement account.

What Are RMDs and How Are They Calculated?

Traditional IRAs and 401(k)s allow retirement savers to defer taxes until they withdraw money from their accounts. This allows the money to continue to grow at a faster rate over time. The IRS does, however, require you to withdraw a specific amount each year once you reach a certain age. This limits you from keeping the funds in a retirement account forever.

The following accounts are subject to RMDs: Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans, other defined contribution plans. Roth IRAs are not subject to RMDs.

To calculate your RMD, first, look up the market value of your retirement account as of Dec. 31 from the previous year. Then, divide that value by the distribution period figure that corresponds with your age on the IRS Uniform Lifetime Table. For example, a 72-year-old retiree with $500,000 in her IRA would divide $500,000 by her distribution period figure, which is 27.4. As a result, she would be required to withdraw at least $18,248 from her IRA in 2022.

Why The New RMD Formula Is Good For Retirees

The IRS has raised the average life expectancy from 82.4 to 84.6. With a higher life expectancy, retirees will likely need to spread their assets over more years. Due to the need to cover additional years, RMDs that begin in 2022 will be less than they were under the previous formula.

Since smaller withdrawals will be required each year, more of your retirement assets can remain in an IRA, 401(k) or tax-deferred account. Smaller RMDs will lessen your tax liability and could potentially drop you into a lower tax bracket – good news for retirees or those subject to RMDs.

Under the previous Uniform Lifetime Table, a 72-year-old with $500,000 in her 401(k) would have been required to withdraw $19,531 ($500,000/25.6) during her first year of taking RMDs. That’s $1,283 more that would have been subject to income taxes compared to the smaller minimum withdrawal required under the revised table.

Meanwhile, a 72-year-old with $2 million in his retirement account would have been required to withdraw $78,125 under the older formula ($2 million/25.6). However, the updated formula results in an initial RMD of just $72,992 ($2 million/27.4), meaning this retiree would keep an extra $5,133 growing tax-deferred in his retirement account.

In summary, for the first time since 2002, the IRS updated the actuarial tables that determine the amount of money a person must withdraw from their IRA or 401(k) at a certain age. The SECURE Act changed the RMD age from 70.5 to 72 and the updated Uniform Lifetime Table has lowered the size of RMDs. This allows you to keep more of your assets in a tax-deferred account. Remember, RMDs are only the minimum amount that must be withdrawn each year. You can always withdraw more from an IRA or 401(k), but keep in mind: the larger the distribution, the larger your tax bill.

If you’re someone who likes to make resolutions on New Year’s Day, you know how hard it is to stick to them. Here are a few resolutions that can help increase your financial fitness and hopefully inspire you to stay committed to them in the new year.

Resolution 1: Create a budget 
Saving and investing during your working years, if you are consistent, should lead to a rising net worth over time, enabling you to achieve many of life’s most important goals. Creating your own budget can help you build your road map and stay on track. At a minimum, be sure to have a high-level budget with three things: how much you’re taking in after taxes, how much you’re spending and how much you’re saving.

Resolution 2: Manage your debt
Debt, depending on how you use it, isn’t always good or bad—it’s simply a tool. For most people, some level of debt is a practical necessity, especially to purchase an expensive long-term asset to pay back over time, such as a home or car. Problems may arise when debt becomes more of a burden than a tool.

Resolution 3: Prepare for the unexpected
Risk is a part of life, particularly in finances. Your financial life can be affected by all sorts of surprises: an illness, job loss, disability, death, natural disasters or lawsuits. If you don’t have enough assets to protect against major risks, make a resolution to get your insurance needs covered. Insurance helps protect against unforeseen events that don’t happen often, but are expensive to manage yourself when they do.

Resolution 4: Protect your estate
An estate plan may seem like something only for the wealthy. But there are simple steps everyone should take. Without proper beneficiary designations, a will and other basic steps, the fate of your assets or minor children may be decided by attorneys and tax agencies. Taxes and attorneys’ fees can quickly diminish these assets and delay their distribution when those who are entitled to them need them most.