Category: Tax

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…
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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…
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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…
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Political Risk Could Have an Outsized Impact on the U.S. Economy in 2013

The combination of increased taxes and spending reductions that will automatically take effect on January 1 if Congress does not act has the potential to decrease the budget deficit by around $600 billion next year but also tank the economy, according to estimates by the Congressional Budget Office.  Tax increases would account for about two-thirds…
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How To Avoid IRA Penalties

The Wall Street Journal recently reported that the IRS will be going after taxpayers that made contribution or withdrawal errors in their IRAs. There were over $280 million in uncollected tax penalties in 2007, according to the Treasury Inspector General for Tax Administration. That’s low-hanging fruit for a federal government strapped for revenues. With this…
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