Category: Tax

A New Benefit for Non-Deductible IRA Contributions

There are a number of tools you can use to reduce taxes on the growth of your investments. You can contribute to a traditional IRA, where you get a tax deduction for the contribution plus tax-deferral on all gains until you retire. Or you can contribute to a Roth IRA. You don’t get the tax…
Read more

A Brief Summary of the New Tax Plan

Congress voted to approve a compromise tax plan at the very last minute – actually beyond the very last minute – in an all too rare showing of bipartisanship to keep the country from falling off the so-called ‘fiscal cliff.’   It is important to note that the economic challenges that the U.S. faces have only…
Read more

Some Tax Tips for Dealing with the Fiscal Cliff

If the President and Congress do not act before the end of the year, the Bush-era income tax cuts will expire along with the December 2010 transfer tax increases (estate, gift, and generation-skipping transfer [GST] taxes). Here is a list of some of the key changes and some consequent tax planning strategies. Here are the…
Read more

How to Get the IRS to Pay You to Save!

Were you aware of a little-known tax credit called the Saver’s Credit?  Low income workers who save for retirement using a 401(k), IRA, or Roth can earn a tax credit worth up to $1,000 for individuals and up to $2,000 for couples.  Formally known as the Retirement Savings Contributions Credit, this tax credit was first…
Read more

Does Tax Gain Harvesting Make Sense for 2012?

You may be familiar with the term “tax loss harvesting.” Towards the end of each year, many investors routinely sell assets such as stocks or mutual funds with embedded losses in order to offset the current taxes they will have to pay on gains from other assets. This strategy generally works well during periods of…
Read more

Is It OK To Make A Trust The Beneficiary Of An IRA?

We frequently get this question from many of our clients, so we thought we’d spend a little time explaining why you need to be careful when naming a trust as the beneficiary of an IRA or Roth.  The primary reason is that a beneficiary normally gets to “stretch” the distributions from an inherited IRA or…
Read more