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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
Being self-employed has many advantages, such as having more autonomy. But being in charge also means more responsibility for business finances and, in some cases, entrepreneurs neglect their own personal planning. Many entrepreneurs will not save enough for the future unless they make retirement savings a priority. A recent TD Ameritrade survey found that 40%
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
Combining Social Security benefits with 401(k) assets can help long-term savers replace more than 60% of current income in retirement, according to a recent report from the Employee Benefit Research Institute. While many clients are probably planning to include Social Security as a source of retirement income, they may not be aware of certain factors
Chris Hennessey shares several resources, such as the Worker Adjustment and Retraining Notification Act (WARN), to identify companies that are hiring and firing, and explains how to use LinkedIn to network for individuals who may be on the move and want to roll over their retirement assets or sell company stock. By law, employers with
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
The permanent federal estate-tax exemption levels do not mean that clients with estates of lesser value can avoid planning. Many aspects of estate-planning remain critical to a comprehensive financial plan. Here are five estate-planning strategies to review with clients. 1. Review estate-planning documents Clients with estates of all sizes need to plan for the future.
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 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
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