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With the passage of the American Taxpayer Relief Act of 2012, Congress extended for 2013 the option for IRA owners over the age of 70½ to make tax-free distributions from an IRA, if those funds are directed to a qualified charity. However, time is running out to take advantage of a new retroactive provision that
Congress approved a bipartisan agreement to reverse spending cuts and tax hikes slated to take effect this year, a day after the United States technically went over the fiscal cliff. As of January 1, 2013, some $600 billion in federal spending cuts and tax hikes were scheduled to take effect, mandated by the Budget Control
As Congress debates fixes for the budget deficit and reviews options to grow revenues, provisions in the tax code that have benefited investors are under scrutiny. Tax reform proposals, such as the Bowles-Simpson recommendations, call for a significant scaleback in the use of tax preference items, including many itemized deductions. More recently, plans endorsed by
With uncertainty around key tax rates as 2013 nears, many clients are looking for tactical strategies to consider in 2012 while rates are still historically low. In fact, for some clients, tax rates on long-term capital gains cannot go any lower: In the 10% and 15% tax brackets, the capital gains tax rate is zero.
While there has been no action yet on the fiscal cliff, high-income earners are wise to prepare for higher taxes, fewer or capped deductions, or all of the above. The window of opportunity to take advantage of tax strategies while tax rates remain historically low is narrowing, so now is the time to contact clients
The final quarter may be the busiest time for financial planning as clients focus on preparing for 2013. This year in particular has presented many challenges for clients as they try to grow and protect assets in the face of uncertainty around taxes and fiscal policy. Some key end-of-year strategies for consideration include: Contact clients
Many older investors choose to satisfy their required minimum distributions (RMDs) by making withdrawals from retirement accounts annually in December. That makes now a good time to contact clients and help them stay on track. The Internal Revenue Service has specific rules for taking RMDs. In fact, the penalty for not taking a required distribution
President Obama’s decisive re-election this week brought some clarity to investors, but the critical issues of averting the impending fiscal cliff and resolving the debt ceiling remain before Congress. While uncertainty surrounds the resolution of these issues, certain programs and tax increases will move forward. Taxes will rise for some The re-election of President Obama
Since October 2008, the federal government’s Transaction Account Guarantee (TAG) program has provided unlimited FDIC insurance on businesses’ non-interest-bearing transaction accounts, which are generally used to meet short-term liquidity needs, such as payroll processing. As of June 30, 2012, there was $1.6 trillion in non-interest bearing transaction accounts, according to the FDIC. Of that amount,
Join Putnam’s tax, investment, and financial-planning experts for a look at the likely consequences of the looming fiscal cliff. Moderated by Wealth Management Strategist William D. Cass, CFP, the conference call will feature Michael J. Atkin, Fixed Income Portfolio Manager, and Christopher P. Hennessey, lawyer and CPA, Putnam Business Advisory Group. Date: Wednesday, November 7, 2012