Our corporation got its final commission check for 2007 today, and it was bigger than usual from that particular insurance company. Combined with the fact that our business expenses were quite a bit lower in December than usual, we have about $1000 left over in our business account. So we’re getting holiday bonuses. I’m going to give each of us a $500 bonus (maybe inspired by watching Christmas Vacation earlier in the week?) on Monday.
When we do bonuses and dividends, there are no taxes taken out, so all year we’ve been compensating for dividend taxes by having additional taxes withheld from our regular paychecks and from my paychecks at the library. But this $1000 hasn’t been accounted for with tax withholdings. So we’re going to put the whole $1000 into my husband’s IRA on Monday, to solve the tax problem – his IRA is a traditional account, so the entire amount will be a tax deduction for the year anyway. We had put $2400 into his account so far, so this will bring us to $3400, only $600 short of maxxing out his IRA for 2007. I’m excited about the extra $1000, and about getting so close to maxxing out an IRA right after we maxxed out our HSA this month.
I’m feeling really good about where we stand financially. We’re on track to have one of our lowest spending months in years, and neither of us is itching to buy anything. So when our credit card cycle ends on January 10th, it should be a nice low bill for the month. The padding on our emergency cushion is getting more and more comfortable, which just inspires me more to keep on keeping on with what we’re doing.
Happy New Year, and I hope that you all have a great 2008!