Sequester Hits IRS
The sequester is coming! The sequester is coming! That is all you heard in February and March. What does that mean for you?
Tax Planning
Wedded Miss: How Changing Your Last Name Affects Moving Your Retirement Money
Tradition has it that when a man and a woman get married, the woman typically takes the last name of her husband. Although today, many choose to modify this tradition, perhaps by hyphenating their maiden name with their husband’s surname, or do away with it altogether and keep their own name, there are still many who keep this tradition alive.
Prohibited Transactions Can Come Back to Haunt You
Two individuals wanted to purchase a business together. They set up self-directed IRAs and a corporation to hold the business. The self-directed IRAs purchased the shares of the new company, which then purchased an ongoing business. The purchase of the business was partly funded with loans that were personally guaranteed by the two individuals.
State Income Tax Consequences of an IRA Contribution
With no state income tax to worry about, Texas residents don't have to worry about the state tax impacts of making IRA contributions. Since there is no state income tax, a deduction for making an IRA contribution is irrelevant. Plus, when IRA distributions are made in the future, Texas residents will only owe federal income tax on those distributions (assuming the Texas' tax laws remain the same). If you happen to live in one of the other 43 states, figuring out the state income tax consequences of making an IRA contribution is likely to be a bit more taxing (pun definitely intended).
Roth Conversions and the 2013 Taxes
A Roth conversion could cost you more in 2013. That's because of several new and/or increased taxes in play for this year. The top income tax bracket is 39.6% for individuals married filing jointly with taxable income in excess of $450,000. A large Roth conversion could easily push an individual into the highest income tax bracket. When adjusted gross income for our married couple exceeds $300,000, personal exemptions and itemized deductions begin to phase out. And, when modified adjusted gross income exceeds $250,000, net investment income for our married couple becomes subject to the 3.8% surtax. So you can see how a Roth conversion could cost an individual more in taxes this year.
3 Financial and Retirement Planning Keys As Your Wedding Nears
Ed Slott and Company IRA Technical Consultant Jeffrey Levine discusses 3 financial and retirement planning keys you should discuss with your impending spouse as your wedding nears. Jeffrey talked about these keys in the IRAtv YouTube video below.
More Information on IRS’ Tax Filing Extension to Boston Bombing Victims
The IRS issued a News Release (IR-2013-43) that gives a three-month tax filing and payment extension to Boston area taxpayers and others affected by the bombs at the Boston Marathon on Monday, April 15th. The new deadline is July 15, 2013.
Retirement Plan Income Tax Deadlines
We are down to the wire. Tax day is Monday, April 15th and it is coming up quickly. Following are some retirement plan deadlines you don't want to miss!
Roth Conversion Horror Story: Bad Advice From an IRA Custodian
If you wanted to have a 2012 Roth IRA conversion, the conversion funds had to leave your IRA account by December 31, 2012. They don’t have to be in the Roth IRA in 2012, they just need to be out of the IRA in 2012. You can take a distribution payable to yourself in November or December 2012 and within 60 days, sometime in January or February, roll over the funds to a Roth IRA. You can even take the funds from an IRA at financial institution A and roll them over to a Roth IRA at financial institution B.
Your Tax Rate May Not Have Increased, But Your Tax Bill Probably Did!
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.
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