Estate Tax: What EVERYONE Should Know

Estate Tax. What EVERYONE Should Know. Most taxpayers ignore the federal estate tax, thinking they will never be touched by it. Unfortunately, you do this at your own peril. Why? Because states often have this tax AND politicians have a habit of frequently changing the rules. The best approach for all taxpayers is to understand the basics of the estate tax. Here is a quick summary of common questions you should be able to answer.

Review IRA Beneficiaries Now

Review IRA Beneficiaries Now. Lost in the pandemic is a tax law change that may require your attention Lost in the media storm during the coronavirus pandemic is a law change enacted in late 2019 that eliminates an IRA withdrawal technique known as the stretch IRA. Here is what you need to know: Time to review beneficiaries While the chances of you having a severe reaction to the coronavirus are low, it is a reminder of

Required Minimum Distributions waived In 2020

Required Minimum Distributions (RMDs) waived in 2020. This includes Traditional, SEP, and SIMPLE IRAs, and employer plans such as 401(k)s, 403(b)s and governmental 457(b)s. 403(b)s and governmental 457(b)s. If you already took your RMD for 2020 and wish to return those funds to the account to avoid paying tax, there are two options: If the initial distribution was taken within the last 60 days, you may return the funds to the account as a 60-day

Frightening facts and what you can do about them

Frightening facts and what you can do about them. Access to better long-term care solutions has become a necessity. This result is due to a tremendous spike in life expectancy in America over the last 50 years. For most people, standard long-term care insurance was traditionally the only viable option.  It was very expensive and created quite an obstacle for most. The good news is today is there are new solutions available out there for

The Importance of Understanding IRA Beneficiary Selection

The Importance of Understanding IRA Beneficiary Selection. Anyone or anything can generally be the beneficiary of your retirement assets such as IRAs, 401(k)s and annuity contracts. It doesn’t have to be a relative and yes, you can name your dog or your alma mater! Choosing the proper beneficiaries is not always as simple as it seems and many people do not realize what the consequences can be. For example, an ailing client asked if he could

Are you sitting on a tax-deferred time bomb?

If you have money in a tax-deferred retirement account such as a 401(k), IRA or 403(b), you’re sitting on a tax time bomb. Here’s why… Conventional wisdom says, “Maximize your contributions to tax-deferred plans. Your money compounds without being reduced by taxes and you’ll end up with more money during retirement.” But like much conventional wisdom about personal finance, it’s baloney. The Society of Actuaries says if tax rates remain the same, “It doesn’t make any

Documents Needed for Estate Planning

You work hard providing for your loved ones during your life. You can also provide for them when you are gone with a simple estate plan that legally conveys your desires to all your heirs. Here’s a short list of some of the basic documents you should consider including in your estate plan. Information memo. Keep a list of your insurance policies, brokerage accounts, businesses you own, outstanding debt, credit cards, tax-related documents, and names and

Everyone needs a financial plan

Everyone needs a financial plan. As some point you will be responsible for your own money. If that is not currently the case for you, here are some ideas to help get your financial plan in order. Retirement fund. Saving for retirement is crucial. Even small amounts can go towards U.S. savings bonds or mutual funds with an automatic savings plan. If you have more money to work with, diversify your holdings among several types