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Use the IRA funding deadline to connect with small business owners

Use the IRA funding deadline to connect with small business owners

Small business owners, including 17 million sole proprietors, represent the vast majority of firms in the U.S. (Small Businss Admin, May 2009) and provide an opportunity for advisors looking to grow their retirement business. In fact, according to the Small Business Administration (Saving for Retirement: A Look at Small Business Owners, March 2010), 9 million

Build your 529 business by targeting local non-profit organizations

Build your 529 business by targeting local non-profit organizations

Each year, churches, schools, hospitals, and civic groups award scholarships to local students. Helping these organizations establish a 529 account as the funding vehicle can be a great way to build business relationships in your community. Here are some reasons why this can be a better alternative for local non-profit organizations, which will typically hold

Non-deductible IRA contributions and Roth conversions

Non-deductible IRA contributions and Roth conversions

Although the income restriction for converting Traditional IRA assets to a Roth were lifted in 2010, there are still limits in place with regard to Roth IRA contributions: Roth IRA contribution eligibility (2011) Individuals: Income must be less than $122,000 (full contribution available below $107,000, partial contribution available between $107,000 and $122,000) Joint filers: Income

Time for an IRA checkup?

Time for an IRA checkup?

Considering the many ways that an IRA can be used to help reduce taxable income, tax season is a good time for an IRA checkup — especially since investors have until April 15 to fund contributions for last year. Additionally, with many people holding numerous jobs throughout their career, your clients may have several IRAs

What are sustainable withdrawal rates for retirement?

What are sustainable withdrawal rates for retirement?

For clients, equally important to saving money is learning how to withdraw money in retirement at a sustainable rate. This topic is important not only for retirees, but also for pre-retirees. In the attached chart, a hypothetical portfolio illustrates how long assets may last given different withdrawal rate scenarios. Some clients may discover they are

Withdrawing money in retirement

Withdrawing money in retirement

When it comes time to withdraw money in retirement, many investors choose to take money from accounts in the following order: taxable, tax deferred, and tax free. The motivation behind this conventional wisdom is often to preserve tax-deferred assets for as long as possible. However, depending on an individual’s tax situation, the conventional wisdom may

Make the most of deductions and exemptions

Make the most of deductions and exemptions

As taxpayers begin collecting their W-2s, 1099s and other tax forms, many are not aware of new provisions benefiting itemized deductions and personal exemptions. Prior to 2010, the value of claiming deductions and exemptions on the tax return diminished (or “phased out”) at higher income levels. For example, see phase-out limits from 2009: Personal exemptions

Tax law creates potential opportunities for taxpayers to save more

Tax law creates potential opportunities for taxpayers to save more

The federal tax law extended today’s historically low tax rates through 2012 and created potential savings opportunities for taxpayers. Clients may want to explore ways of capitalizing on the tax rates now before future changes occur. Higher taxes are already on the horizon, including a new 3.8% Medicare surtax on investment income that becomes effective

Estates in 2010 have two options

Estates in 2010 have two options

Since the estate tax was technically repealed at the start of 2010 as a result of a sunset provision within EGTRRA, planning has been challenging due to uncertainty around potential legislative changes that would impose different rules. The signing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. into law in