Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are three areas where
As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it.
From 1997 to 2020, the top estate tax rate has declined from 55% to its current 40%. Perhaps the bigger impact has been the significant increase in the estate tax exemption from $600,000 per individual, or $1.2 million per couple,
According to the Internal Revenue Service, IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) this year have until August 31 to rollover or repay the distribution to avoid paying taxes. The Coronavirus Aid,
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Fair Market Value Rules Under the fair market value basis rules (also known as the “step-up and step-down”
Most people can agree that no one wants to see the pain and suffering that the COVID-19 pandemic has caused. Family lives have been disrupted, education put on hold and great uncertainty about what the future holds. It has also
As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. So how do you qualify? In other words, what’s a coronavirus-related
Avoid taxes on your refund for qualified 529 expenses by recontributing it by July 15th. Campuses are closed. Classes have been disrupted. Future plans are on hold. Still, there may be a silver lining of Covid 19, as you may have
It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA
Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2019 tax year between now and the extended tax filing deadline and
The coronavirus (COVID-19) pandemic has caused the value of some retirement accounts to decrease because of the stock market downturn. But if you have a traditional IRA, this downturn may provide a valuable opportunity: It may allow you to convert
If you have a life insurance policy, you probably want to make sure that the life insurance benefits your family will receive after your death won’t be included in your estate. That way, the benefits won’t be subject to the
