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Don’t let the Medicare payroll tax surprise your clients

Don’t let the Medicare payroll tax surprise your clients

Before tax season begins, high-income clients may be seeking clarity on the new taxes introduced this year as part of the federal health-care reform law. Some clients may be subject to the new 3.8% surtax on net investment income as well as an additional 0.9% Medicare payroll tax. These taxes apply to individuals with income

Debt ceiling resolved, for now

Debt ceiling resolved, for now

Congress sealed a deal Wednesday night to end the partial government shutdown and raise the nation’s debt ceiling for the near term. President Obama signed the bill, after the House voted 285 to 144, to re-open the government, fund operations through January 15, 2014, and raise the borrowing limit through February 7. Although bill opponents

DOMA ruling means new benefits for same-sex couples

DOMA ruling means new benefits for same-sex couples

A landmark U.S. Supreme Court decision this year recognized that same-sex married couples have the right to receive certain federal benefits and tax filing considerations that go to all married couples under federal law. The court ruled on June 26, 2013, that the Defense of Marriage Act (DOMA), which prohibited the federal government from recognizing

Deadline to undo a Roth conversion is approaching

Deadline to undo a Roth conversion is approaching

With an October 15 deadline to “undo” a Roth IRA conversion, now is an opportune time to reach out to clients who may want to reverse that transaction. Clients who converted a traditional IRA to a Roth IRA in 2012 have until October 15, 2013, to reverse or “recharacterize” the conversion, transferring the assets back

Top 4 questions about the continuing resolution debate

Top 4 questions about the continuing resolution debate

Congress is debating proposals to fund the federal government past September 30, amid efforts to defund the Affordable Care Act. Here are some of the leading questions about the continuing resolution that keeps the government operating and about the related debt ceiling debates on Capitol Hill. 1. What is a continuing resolution (CR)? A CR

What clients need to know about the health-care law

What clients need to know about the health-care law

While businesses received a reprieve from providing health insurance coverage for employees until 2015, the federal mandate for individuals is still scheduled to take effect in 2014. This core component of the health-care reform law is expected to extend health insurance to roughly 30 million uninsured individuals. With enrollment through established health-care exchanges set to

Three reasons why 529 plans remain popular

Three reasons why 529 plans remain popular

The back-to-school season can be a good time to talk about college savings. As many parents would attest, before you realize it, back to school means back to college. A 529 college savings plan remains one of the most popular vehicles for saving for college costs, largely due to the ease of account creation, flexibility,

Connect with non-profits with a 529 scholarship account

Connect with non-profits with a 529 scholarship account

Strategies involving 529 college savings plans offer many opportunities for advisors to connect with a range of clients, from individuals and families to non-profit organizations. The rapid growth of 529 plans illustrates the potential business opportunities. After retirement, education funding is widely regarded by investors as the most important savings need. Advisors who reach out

Are clients financially ready for a long retirement?

Are clients financially ready for a long retirement?

Will you live to be 100? While no one can predict the future, longevity is an important consideration when planning for retirement. A longer life could extend retirement years, and issues like inflation, health-care costs, and withdrawal rates may become increasingly important issues to navigate. To meet retirement income goals, clients will want to understand