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Generally, owners of certain government savings bonds have to pay taxes on interest — either in the year the interest was earned or when the bond is redeemed. Certain bond owners may be able to avoid taxes on all or a portion of the bond interest payments if the proceeds are designated for qualified education
With income restrictions on conversions lifted beginning in 2010, Roth IRAs became accessible to affluent investors (specifically those with incomes greater than $100,000) for the first time. It’s reasonable to suggest that many of these investors are not well-versed in some of the intricacies of Roth IRAs, including the option of recharacterization. Now is an
Government projections for the solvency of Social Security and Medicare are worsening, which may increase the likelihood of your clients’ becoming more reliant on other income-generating investments in retirement. With federal budget deficit challenges more prominent in the news media, it may be a good time to review retirement strategies with clients. In recent weeks,
While the recent stock market has undoubtedly challenged client nerves, it can present attractive financial planning opportunities for certain savvy clients. Consider the following: Converting to a Roth IRA With many IRA account values lower, it may be a great time to consider a Roth IRA conversion. The lower the value of the Traditional IRA
What would happen if one of your key clients faced a lawsuit or civil judgment, or was forced to declare bankruptcy? Have they consulted an attorney to discuss the legal options available to protect their wealth? For many people, asset protection is an afterthought or not thought of at all. That is why it is
Congress and the White House have reached an agreement to raise the federal debt ceiling and have approved a package of spending cuts this week, but not until after weeks of debate that added to growing uncertainty in the markets and a lack of confidence from investors. A recent survey by TNS Global Market Research
While much attention has been focused on the new federal estate tax, clients working on estate planning also need to know that many states have estate or inheritance taxes. Exemptions vary, and some states have laws that set exemption rates that are not as favorable as the federal law. The federal estate tax is set
The tax law changes of December 2010 resurrected a provision allowing IRA account owners over the age of 70½ to send distributions from their IRA directly to a public charity tax free. This option remains in place through the end of 2011, and has been an attractive alternative for retirees wishing to avoid taxes upon
As the retirement industry has transitioned from a defined benefit model to a predominantly defined contribution model, individuals’ personal responsibility in managing their retirement income has become increasingly important. In fact, as of the end of 2010, the percentage of assets within private pensions equaled roughly 19% — significantly lower than DC plans (40%) and
Most of your clients are probably aware that the historically low, 15% maximum tax rate on long–term capital gains has been extended for the next two years. However, they may not be aware that taxpayers in the lowest two tax brackets actually benefit by paying no capital gains taxes on the sale of appreciated assets.