Winning the Retirement Race
As you look ahead to retirement, are you prepared? Have you begun the necessary planning to ensure financial security? In a lot of ways, planning for retirement is like running a relay race. You must plan, strategize and pace yourself to ensure you cross the finish line. In an article for FoxBusiness.com, Matthew Illian outlines…
Why you should max out your 2013 401(k) contribution
Contributing the maximum you’re allowed to an employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, is likely a smart move: Contributions are typically pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the new 3.8% Medicare tax on net investment income. Plan…
Financial Planning for the Fall
In an article for Money.usnews.com, Kimberly Palmer outlines some shrewd financial suggestions for your fall financial planning. There are just a few months left to take advantage of things like open enrollment, using up certain types of flex-spending dollars and making contributions to some tax-deductible accounts. Fall is the perfect time of year to look…
Expiration date for home mortgage debt forgiveness rapidly approaching
Since 2007, homeowners have been allowed to exclude from their taxable income up to $2 million in cancellation-of-debt (COD) income ($1 million for married taxpayers filing separately) in connection with qualified principal residence indebtedness (QPRI). The exclusion had been available only for debts forgiven through 2012, but Congress extended it. Now that expiration date —…
Businesses Already Feeling the Effect of Government Shutdown
The Federal Government effectively shutdown operations beginning Tuesday, October 1, 2013, and by the end of the day the shutdown was already affecting businesses. Due to the budget stalemate in Congress, many agencies were left with no money to operate and were forced to furlough approximately 800,000 federal workers nationwide. These cutbacks in services and…
IRS issues final regs on tangible property expenses
The regulations (IRS T.D. 9636) provide guidance on how to comply with Sections 162 and 263 of the Internal Revenue Code. These sections require amounts paid to acquire, produce or improve tangible property to be capitalized but allow amounts for incidental repairs and maintenance of property to be deducted — potentially saving you more tax…
Roth 401(k) to a Roth IRA
With the S&P highs that were reached this week some investors are more encouraged to return to the stock market. You may be thinking about ways to save more money and what investments can supplement a traditional 401(k). The answer is to see if your employer offers a Roth 401(k). In this plan, people of…
Will your investment income be subject to the new 3.8% NIIT?
Under the health care act, starting in 2013, taxpayers with modified adjusted gross income (MAGI) over $200,000 per year ($250,000 for joint filers and $125,000 for married filing separately) may owe a new Medicare contribution tax, also referred to as the “net investment income tax” (NIIT). The tax equals 3.8% of the lesser of your…