You are still working. You want to convert some of your employer plan funds to a Roth IRA to follow Ed Slott's advice and begin years worth of tax-free saving. Can you? We examine the answer to that question and more in this week's Slott Report Mailbag.
As we reported earlier, the American Taxpayer Relief Act of 2012 (ATRA) extended the qualified charitable distribution (QCD) rules retroactively for 2012 and through 2013. Two special rules allow IRA owners to have a donation made before February 1, 2013 be treated as a 2012 QCD. Click to learn more about the new IRS guidance on QCDs.
IRS released a revenue procedure (Rev. Proc. 2013-15) on Friday that set forth inflation adjusted items for 2013 and other items whose values for the coming year are specified in the American Taxpayer Relief Act of 2012. IRS welcomed the addition of the new 39.6% income tax bracket, the beginning income levels for the limitation on certain itemized deductions and the beginning income levels for the phaseout of personal exemptions.
As much as we like Roth conversions and encourage individuals to convert, we do realize that Roth conversions aren't for everyone. There have always been many factors to consider before doing a conversion. With the passage of the 2012 tax act on January 2, 2013 and with the healthcare surtaxes taking effect in 2013, there are now more factors to consider. We explain these below.
The questions are rolling in, as consumers are trying to make sense of the American Taxpayer Relief Act of 2012. Enjoy this week's Slott Report Mailbag!
On January 2, 2013 President Barack Obama signed the American Taxpayer Relief Act (ATRA) into law. Chances are this was pretty good news for you. Although the ATRA does create a new 39.6% tax bracket, this bracket is only expected to impact about 2% of all taxpayers. But just because your ordinary tax rate doesn’t increase in 2013 doesn’t mean you won’t pay more tax this year. In fact, most estimates show that anywhere between 75% and 80% of all taxpayers will pay more tax in 2013 than they did in 2012. Here’s a few reasons why that could be the case for you.
The rules for operating an employer retirement plan are complicated and mistakes are sometimes made. Recently, the IRS released Revenue Procedure 2013-12 with information that updates the Employee Plans Compliance Resolution System (EPCRS) for addressing various retirement plan compliance problems.
The new tax provisions within the American Taxpayer Relief Act of 2012 make some subtle, if not substantial, changes to income tax rates, the top estate tax rate, capital gains rates for upper-income earners and more. Click to learn how these changes may impact you.
Congress finally got around to passing tax legislation for 2012 with the American Taxpayer Relief Act of 2012. It revived qualified charitable distributions (QCDs) for two years – retroactively for 2012 and also for 2013. They had to tweak the rules, though, for 2012 since they did not renew the provision until 2013. What major tweak is in store?
A new tax law brings a lot of indecision, and we expect the questions to start pouring in over the Taxpayer Relief Act of 2012. In the short term, we continue to see many questions about how to forge forward with proper planning in 2013, outside any of the tax provisions from the new law. This week's Slott Report Mailbag tackles Roth conversion income limits, Roth recharacterizations and the rules governing IRA distributions.
