Category: Tax

IRA Rollover Loophole Soon To Be Plugged

The IRS wants to make it easy for you to set up and maintain IRA accounts.  Part of that strategy involves keeping your IRA accounts at whichever qualified custodian you prefer.  Should you become unhappy with the costs or services provided by one custodian, the IRS allows you to move some or all of the…
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Roth Conversions Take Off

Richard Rubin and Margaret Collins at Bloomberg News recently reported that conversions from traditional IRAs to Roth IRAs increased more than nine times in 2010, according to the Internal Revenue Service.  Taxpayers converted $64.8 billion in 2010, as compared to $6.8 billion in 2009. This was the first year that Roth conversions were greater than…
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Is a Roth 401(k) Right for You?

Traditional Individual Retirement Accounts (IRAs) and Roth IRAs have been around for some time now.   For those of you unfamiliar with the difference, a Roth is the inverse of a traditional IRA.  That is, contributions made to a traditional IRA are tax deductible when made, but taxed when withdrawn, typically beginning at age 71.  With…
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Five End-of-Year Tax Tips

Since we’re approaching the end of another fiscal year, this is a good time to start developing your tax strategies.  Here are five tips to consider. Try to avoid selling investments that you have held for less than one year.  The gains on such investments are taxed at the short-term capital gains tax rate, which…
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New Tax Benefits for Same-Sex Couples

The Treasury Department and the Internal Revenue Service announced last week that they will apply the federal “married” tax treatment for same-sex married couples no matter where they live — even in the 37 states that don’t recognize their own citizens’ gay marriages. The guidance is part of the government’s implementation of the June 26…
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Sudden Wealth – Blessing or Curse?

Now that the Powerball lottery has arrived in California, I thought it would be good to talk about the impact of unexpected or sudden wealth on one’s life.  We’ve all probably dreamed at one time or another about how fantastic our lives would become if we could only win the lottery.  I’ve no doubt there…
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