Tax time: Schedule a client talk on IRAs

Tax time: Schedule a client talk on IRAs

With the April 15 deadline approaching for making a 2013 tax year contribution to an individual retirement account, it is a good time to talk about tax strategy. And with varying types of IRAs available, clients of all income levels may benefit. Higher-income clients who may not be eligible to contribute to a Traditional or

A net gain for NUA

A net gain for NUA

An obscure rule for tax-savings on highly-appreciated company stock may be more appealing to clients following additional clarification and guidance from the Internal Revenue Service on the investment income surtax. Federal laws include special tax treatment for certain distributions of company stock held within a retirement plan. Under this rule, only the cost basis of

Tax reform proposal seeks to curb deductions

Tax reform proposal seeks to curb deductions

Limiting or reducing deductions were among the highlights of the most recent tax reform proposal on Capitol Hill, catapulting tax-preference items to the forefront of the debate once again. Although unlikely to proceed as a formal piece of legislation, the Tax Reform Act of 2014 — released last week by House Ways and Means Committee

Use the 1040 form to uncover opportunities for clients

Use the 1040 form to uncover opportunities for clients

During tax season, it’s common for both advisors and clients to be focused on tax filing forms. But tax forms may be used for more than just filing taxes. Consider using IRS tax form 1040 to launch a variety of planning discussions. Use the table below to see how the line items reveal information that

Despite federal deficit improvements, tax outlook is still cloudy

Despite federal deficit improvements, tax outlook is still cloudy

Despite a report this week pointing to decreasing federal deficits over the next two years, the longer-term outlook for tax rates grew murkier. After four consecutive years of topping $1 trillion, the U.S. federal deficit fell to $680 billion, or 4.1% of GDP, in 2013, according to the Congressional Budget Office (CBO) Budget and Economic

Tax-smart planning ideas for 2014

Tax-smart planning ideas for 2014

With the introduction of higher tax rates for some taxpayers in 2013 and ongoing tax-reform debate in Washington, it is essential for any comprehensive financial plan to include tax smart planning strategies. Specific income thresholds will trigger the new 3.8% Medicare surtax, income phase-out of itemized deductions, or the highest marginal tax rate. These five

Roth conversions are on the rise. Are they right for your clients?

Roth conversions are on the rise. Are they right for your clients?

Roth IRA conversions are on the rise following tax law changes — expanding access for more clients to take advantage of the opportunity to diversify the tax status of their retirement savings. Converting tax-deferred retirement assets, such as traditional IRAs, to a Roth increased significantly in 2010. This took place after new tax provisions were

2014 tax rates, schedules, and contribution limits

2014 tax rates, schedules, and contribution limits

Putnam’s 2014 tax rate chart is a useful reference to share with clients and other professional relationships, such as certified public accountants. Putnam Investments: 2014 tax rates, schedules, and contribution limits from Putnam Investments 286034

Are your clients at risk of owing AMT? Millions are.

Are your clients at risk of owing AMT? Millions are.

Approximately four million taxpayers are expected to owe alternative minimum tax (AMT), despite congressional action to adjust the exemption level. Introduced in 1969, the AMT is intended to ensure that wealthy taxpayers could not avoid income tax by exploiting weaknesses in the tax code. Since the AMT was not indexed for inflation, the number of