Category Archives: Retirement

A Certificate of Deposit (CD) is a low-risk savings product offered by banks and credit unions. You deposit money for a fixed period (the “term”) and earn interest — typically higher than a regular savings account.

Here are the main benefits of a CD:

💰 1. Higher Interest Rates

• CDs generally offer better returns than regular savings accounts or money market accounts.

• Longer terms usually mean higher rates (e.g., 1-year vs. 5-year CD).

🔒 2. Safe and Low-Risk

• CDs are FDIC-insured (up to $250,000 per depositor per bank), so your money is very safe — even if the bank fails.

🧘‍♂️ 3. Guaranteed Returns

• The rate is locked in for the term, so your earnings are predictable and not affected by market swings.

⏳ 4. Discourages Impulse Spending

• Since withdrawing early results in penalties, CDs can help you commit to saving and avoid dipping into your money.

🧩 5. CD Laddering Option

• You can build a CD ladder (staggered maturity dates) for steady access to funds and still benefit from long-term rates.

📈 6. Good for Short-Term Goals

• Useful if you’re saving for something in 6 months to 5 years — like a home down payment, car, or tuition — and want a risk-free return.

⚠️ Note: CDs do have downsides, like:

• Early withdrawal penalties

• No access to funds during the term

• Lower returns than stocks or mutual funds over long periods

What Are 2025 CD Rates?

Here are the current Certificate of Deposit (CD) rates as of late July 2025, along with an outlook for the rest of the year:

📈 Current Highlights (July 31, 2025)

• Top CD yields currently run from 4.50% to 4.60% APY, depending on term and institution Bankrate+13The Wall Street Journal+13Personal Financing Planner+13Fortune+11Investopedia+11Bankrate+11.

  • For example, Northern Bank Direct offers 4.50% APY on a 9‑month CD with a $500 minimum The Wall Street Journal+1Investopedia+1.

  • Genisys Credit Union offers 4.60% APY on a 19‑month CD with a $500 minimum Investopedia.

• National average rates remain far lower:

  • 1‑year CD: ~1.63% APY average FDIC+1Investopedia+1.

  • Overall national average across terms: about 2.4%–2.5% APY, ranging from ~1.5% for 3‑mo to ~1.95% for 5‑yr CDs Forbes+2experian.com+2NerdWallet+2.

🏦 Where to Find Best Rates

• Online banks and credit unions offer the highest yields—typically 4%–4.6% APY for CD terms of 6 months to 2 years cbsnews.com+5Bankrate+5Investopedia+5.

• Smaller credit unions often pay more than larger national banks due to lower overhead and more aggressive rates NCUAexperian.com.

🔭 Rate Outlook for the Rest of 2025

• The Federal Reserve has maintained the benchmark rate at 4.25%–4.50% through mid‑2025, keeping CD yields elevated Investopedia+3Forbes+3Investopedia+3.

• Analysts expect at least one more rate cut by year-end, which means CD yields may start to decline soon—a window to lock in high rates now Investopedia+1Investopedia+1.

• Bankrate’s forecast: national average 1‑year CD APY may fall to around 1.25%, and top competitive 1‑year CD rates may reach up to 3.70% by year-end, while top 5‑year rates may drift nearer 3.95% Bankrate.

💡 Quick Summary Table

✅ Takeaway

• Best rates today: 4.5%–4.6% APY on CDs from online banks and credit unions (6–19 month terms).

• National average CD rates remain low at ~1.6% for 1‑year CDs and ~2.5% across all terms.

• Act now if you want to lock in top yields—rate cuts later in 2025 are likely to depress CD rates.

What Is a CD Ladder?

A CD ladder is a savings strategy that involves spreading your money across multiple certificates of deposit (CDs) with different maturity dates. It helps you:

• Earn higher interest than a regular savings account

• Maintain access to portions of your money at regular intervals

• Reduce interest rate risk if rates drop

🪜 How a CD Ladder Works

Let’s say you have $10,000 to invest. Instead of putting it all in a 5-year CD, you divide it like this:

Each year, one CD matures. You can either:

• Withdraw the money if you need it

• Reinvest it into a new 5-year CD at the (hopefully higher) rate

After five years, you have a rotating ladder of 5-year CDs maturing every year — giving you:

• Long-term interest rates

• Yearly liquidity

✅ Benefits of a CD Ladder

• 📈 Higher returns than leaving all money in short-term CDs

• 🧘 More flexibility than locking all funds for 5 years

• 🔁 Reinvestment opportunity as rates rise

• 💡 Reduces risk of locking in all money when rates are low

🧠 Who Should Use It?

• Conservative savers who want safe, predictable income

• Retirees looking for staggered access to cash

• Anyone concerned about future interest rate changes

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

The IRS acknowledges that costs related to assisted living communities can be quite a burden on seniors and their loved ones. Current tax laws are in place to allow eligible individuals to deduct a portion of assisted living expenses on their taxes.

Are Assisted Living Costs Tax Deductible?

Assisted living communities offer seniors as much independence as they want while knowing help is just around the corner. These environments are quite appealing both to potential residents and their loved ones, in most cases.

Assisted living communities offer a home-like atmosphere with living spaces that include studios and one-bedroom apartments. They essentially give seniors their freedom while having peace of mind, knowing a full staff is there to care for them if needed.

The good news is some assisted living expenses are indeed tax deductible. However, this will depend on whether or not the services qualify as medical care as outlined by IRS guidelines.

If the medical expenses exceed 7.5% of adjusted gross income (AGI) and are itemized, the expenses could ultimately be eligible for tax deductions. For example, a resident with an AGI of $50,000 in the past year can claim a deduction for the qualified medical care costs that exceed $3,750.

Which Assisted Living Expenses Qualify For Tax Deductions?

It’s vital to know only a portion of assisted living costs directly related to medical care are eligible for tax deductions.

Expenses directly related to room and board are usually eligible for deductions unless the certain individual is already receiving substantial medical care as part of their residency in the assisted living community. The IRS will typically define a qualifying dependent as either a parent, grandparent, mother, father in-law, or stepparent.

Assisted Living Costs That Can Be Written Off

In most cases, medical expenses account for a portion of both assisted living and memory care monthly fees. There are a few unique scenarios where residents can deduct the entire monthly fee, while most other residents are only able to qualify for a few specific deductions.

General expenses related to health, such as vitamins and fitness club fees, are not tax deductible. Here are a few expenses that can be written off:

• Health insurance premiums.
• Nursing services.
• Dental costs.
• Assisted living entrance fees directly related to medical care.
• Prescription drugs, which includes insulin.
• Travel expenses related to medical care.
• Meals and lodging during a hospital stay.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

No, you typically cannot add to the balance of a traditional Certificate of Deposit (CD) once it has been opened. CDs are designed as fixed-term, fixed-deposit savings products, meaning:

🔒 Key Characteristics of Standard CDs:

✅ Options If You Want to Add Money Regularly

If you’re looking to build savings gradually while still earning better-than-savings-account rates, consider:

1. Add-On CDs

• Allow additional deposits during the term

• Offered by select banks and credit unions (e.g., Ally, BECU, or local AZ credit unions)

• Often have minimum add-on amounts and maximum contribution limits

2. CD Ladder Strategy

• Open multiple CDs at different terms (e.g., 6 mo, 12 mo, 24 mo)

• As each CD matures, you reinvest plus add more money

• Provides liquidity and flexibility over time

3. High-Yield Savings Account (HYSA)

• Interest rates competitive with short-term CDs

• Flexible and allows unlimited deposits and withdrawals (ideal for growing funds to move into a CD later)

📍 Arizona Tip:

Credit unions like Desert Financial or Arizona Federal occasionally offer special add-on CDs, especially for seniors or members with checking accounts.

Would you like help finding:

• The best add-on CD rates available now?

• A CD ladder template to manage long-term savings?

The Best Add-On CD Rates Available Now

Here are the best add-on CD rates available now (June 2025), along with top regular CDs for comparison:

✅ Top Add-On CD Offer

• Bank5 Connect 24‑Month Investment Add‑On CD

  • 4.25% APY

  • Allows additional deposits anytime during the 2-year term wsj.com+15 bank5connect.com+ 15fool.com+15

  • Full FDIC insurance; flexible deposit options via electronic transfer or check

👉 Ideal for savers who want to continue adding funds while earning a solid fixed rate.

💼 Best Standard CD Rates (No Add‑On Feature)

• Some smaller or community institutions have offered yields up to 4.65% APY wsj.com+1 5fool.com+ 15fool.com+15.

• No-penalty CDs (e.g., from Sallie Mae, 7–14 months) are also hovering over 4% APY fool.com+3 kiplinger.com+3 fool.com+3.

🔎 How to Choose

• 💡 Need flexibility?
  → Go with an add-on CD, like Bank5 Connect’s 4.25% add-on CD. You can grow your balance while it’s locked in.

• 💸 Want the highest rate?
  → Consider short-term standard CDs (like 6 or 9 months) with top-tier rates (4.49–4.60% APY).

• 🔐 Prefer liquidity?
  → Check out no-penalty CDs offering ~4.0–4.3% APY, allowing early withdrawal without fees.

🧭 Next Steps

• Decide if flexibility (add-on feature) or maximum yield is more important.

• Compare actual availability and enrollment requirements—especially at smaller banks and credit unions.

• Watch for upcoming rate cuts—locking in top rates now may protect your returns later in the year investopedia.com+15 fool.com+15 bankrate.com+15 kiplinger.com+1moneyrates.com+1.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Prior to the year 2018, the IRS allowed itemized deductions on eligible estate planning fees. However, the Tax Cuts and Jobs Act of 2017 (TCJA) ultimately changed that rule. Today, estate planning fees are no longer deductible from your taxable income.

Are Estate Planning-Related Fees Tax Deductible?

As detailed above, estate planning fees are not tax deductible like they were before the TCJA ruling. Prior to the TCJA, the IRS did consider estate planning-related fees to be tax deductible.

The good news for those seeking tax deductions is that this ruling is up for renewal in 2025, meaning estate planning fees could possibly be deductible once again.

Previous Estate Planning Deductions

Before the tax reform changes were made, some estate planning fees were eligible for itemized deductions, according to IRS rules. Less complicated matters, such as property transfers, were not tax deductible because the IRS considered them personal expenses.

The IRS used to allow taxpayers to deduct some fees related to estate planning, under Schedule A rules for miscellaneous deductions. These deductions included expenses related to the following:

• Tax preparation, advice, and accounting from a tax professional.
• Collection or production of income like investment advice.
• Legal expenses for powers of attorney, trusts, wills, and other legal documents.
• Management, conservation, and maintenance of real estate considered income-producing property.

Estate Planning Fees After The Tax Cuts And Jobs Act

With the TCJA in effect, taxpayers can no longer deduct estate planning fees as miscellaneous deductions. Typically, though, this only has a minimal impact on the majority of taxpayers.

Before the reform, taxpayers were only allowed to deduct expenses that were related to the production of taxable income. In order to qualify for the deductions, the miscellaneous expenses needed to exceed 2% of the taxpayer’s adjusted gross income (AGI).

This number is used to determine the taxpayer’s income. The number is calculated by taking an individual’s total income and subtracting adjustments, such as the following:

• Alimony.
• Pre-tax retirement contributions.
• Select medical costs.
• And more.

These items would then be subtracted from the individual’s taxable estate. Once the deductions cleared the 2% AGI bar, they still had to exceed the individual’s standard deduction amount to qualify.

Conclusion

It’s quite possible that estate planning fees become deductible sometime in the near future. Most provisions of the TCJA remain in effect until the end of the year 2025. At that time, Congress must decide whether or not to renew these changes.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Thankfully, when the IRS rejects your tax return, it’s usually nothing to be overly concerned about. Let’s take a look at a few reasons why your tax return was rejected and what you can do moving forward.

What Is An IRS Rejected Tax Return?

If you receive a notice from the IRS that your federal income tax return was rejected, it means they noticed and error. The IRS is sending the return back to you for correction.

Why Did The IRS Reject My Tax Return?

The IRS will reject a tax return for a variety of reasons, including the following:

The Return Was Already Accepted

The IRS will reject your tax return if they previously accepted a return with your Social Security number (SSN) or taxpayer identification number (TIN). If this occurs, if could be a sign of identity theft or fraud.

Missing Or Incorrect Information

The IRS can also reject your return if a name or number fails to match what they have on file for you. For instance, if you changed your name after marriage or need to update your name with the Social Security office, the IRS needs to know about this. A simple issue like a typo when e-filing your return could end up in a rejection.

Your Signature Does Not Match

When you e-file, the IRS will ask you to provide your adjusted gross income (AGI) from the previous tax year or an Identity Protection PIN to ultimately verify your identity. If the numbers you provide do not match the IRS’ records, your return will likely be rejected.

You Claimed A Dependent Claim On Another Return

If you try to claim a dependent, such as a child, already claimed on another tax return, the return will be rejected. An example of this could be a divorced parent trying to claim their child when their ex-spouse has already claimed the child on their return. The same thing can happen if a dependent files their own return and claims themselves.

How Will I Be Notified If My Return Has Been Rejected?

Depending on how you file, the IRS will usually notify you of a rejected tax return via email or standard mail. In the rejection notice, you will find a rejection code and an explanation of why the rejection occurred.

However, you should always be wary of scammers that try to steal your information posing as the IRS. The IRS will typically not call you about a rejection unless they have repeatedly tried contacting you by other means first.

What To Do If A Tax Return Is Rejected

If your return has been rejected, you will need to correct any errors and resubmit the return as soon as you can. You may be able to e-file the return for small mistakes like a typo, or the IRS could instruct you to mail in a paper return for more serious errors.

How To Fix A Rejected IRS Tax Return

Once you know exactly what caused the return to be rejected, you are required to correct the mistake and resubmit the original return.

How Long Do I Have To File A Corrected Return?

You will need to correct any mistakes prior to the year’s tax deadline. If the IRS rejects your return on or after Tax Day, you will have five days to correct and resubmit the return.

Some states will have different grace periods for rejected returns, so always check to see how much time you have to resubmit your return.

What To Do If A Return Was Rejected Due To Identity Theft

It’s recommended to act as soon as possible if you believe you are a victim of identity theft. Respond promptly to any IRS correspondence by calling them with the number provided. You should also print and mail in Form 14039 with your submitted return.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Depending on how you file, the IRS will usually notify you of a rejected tax return via email or standard mail. In the rejection notice, you will find a rejection code and an explanation of why the rejection occurred.

However, you should always be wary of scammers that try to steal your information posing as the IRS. The IRS will typically not call you about a rejection unless they have repeatedly tried contacting you by other means first.

Thankfully, when the IRS rejects your tax return, it’s usually nothing to be overly concerned about. Let’s take a look at a few reasons why your tax return was rejected and how you can start the process over.

Why Was My Tax Return Rejected?

The IRS will reject a tax return for a variety of reasons, including the following:

The Return Was Already Accepted

The IRS will reject your tax return if they previously accepted a return with your Social Security number (SSN) or taxpayer identification number (TIN). If this occurs, if could be a sign of identity theft or fraud.

Missing Or Incorrect Information

The IRS can also reject your return if a name or number fails to match what they have on file for you. For instance, if you changed your name after marriage or need to update your name with the Social Security office, the IRS needs to know about this. A simple issue like a typo when e-filing your return could end up in a rejection.

Your Signature Does Not Match

When you e-file, the IRS will ask you to provide your adjusted gross income (AGI) from the previous tax year or an Identity Protection PIN to ultimately verify your identity. If the numbers you provide do not match the IRS’ records, your return will likely be rejected.

You Claimed A Dependent Claim On Another Return

If you try to claim a dependent, such as a child, already claimed on another tax return, the return will be rejected. An example of this could be a divorced parent trying to claim their child when their ex-spouse has already claimed the child on their return. The same thing can happen if a dependent files their own return and claims themselves.

What To Do If A Tax Return Is Rejected

If your return has been rejected, you will need to correct any errors and resubmit the return as soon as you can. You may be able to e-file the return for small mistakes like a typo, or the IRS could instruct you to mail in a paper return for more serious errors.

Once you know exactly what caused the return to be rejected, you are required to correct the mistake and resubmit the original return.

Correcting An E-File Rejection

Whenever an e-filed return is rejected, the IRS generally sends a rejection code that includes an explanation of why it was ultimately rejected. This will usually happen within a few hours of submitting the return.

You may be able to resubmit through e-file or filing a paper return depending on the reason why the return was not accepted. If, for example, you made a mistake in entering the EIN or SSN or other errors, you can make corrections and e-file the return once again. Ensure that you submit before the filing deadline or within five days of getting the rejection notice if this occurs after the deadline passed.

Refiling By Paper Return

When the return is rejected because of possible identity theft or tax fraud, the IRS requires individuals to resubmit the return by mail. You also need to refile by mail if your dependent was claimed on another individual’s tax return.

You will need to include all required tax forms, W-2s and/or 1099s, as well as any additional supporting documentation. The IRS Form 14039, Identity Theft Affidavit should also be included.

Once the IRS has received your return and Form 14039, you will get an acknowledgement letter. The IRS will then investigate the returns in questioned and make a decision on which one is valid. Sometimes, this entire process can take up to six months to complete.

How Long Do I Have To File A Corrected Return?

You will need to correct any mistakes prior to the year’s tax deadline. If the IRS rejects your return on or after Tax Day, you will have five days to correct and resubmit the return.

Some states will have different grace periods for rejected returns, so always check to see how much time you have to resubmit your return.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.