Page 67
At this point, many of your clients are likely aware of the benefits of Roth IRAs — tax–free withdrawals in retirement, no required minimum distributions, the option to leave an income–tax–free legacy to the next generation — but have been reluctant to convert their eligible traditional retirement accounts. For those clients, here are two important
529 scholarship accounts are a great way to generate business and also create future referral and networking opportunities. Charitable organizations that offer scholarships usually have a dedicated staff member for administrating finances, or may outsource fund management to third-party administrators. The additional costs associated with recordkeeping and program administration may mean that the organization can
Helping a grandchild save for college with a 529 plan may be rewarding for the grandparent as well as the child, especially with estate taxes poised to return in 2011. Grandparents may open a 529 plan as a gift to a grandchild, with the grandparent remaining as the owner of the plan. Grandparents may deposit
Many financial advisors are successfully putting a new twist on the traditional asset allocation review. With Baby Boomer clients heading toward retirement and the prospect of higher tax rates imminent, it is increasingly important that clients’ assets are diversified from a tax perspective, in addition to the traditional asset allocation perspective. For many clients, the
Grantor Retained Annuity Trusts (GRATs) are a powerful vehicle for transferring assets to family members free of gift and estate taxes. Clients who wish to take advantage of their tax benefits need to act soon. A GRAT can be funded with a wide range of investments and is typically established for a term of two
Sweeping tax legislation enacted under George W. Bush is set to expire at the end of 2010. The ramifications for savers and investors are significant, including higher or reinstated taxes across the tax code. Congress has the remainder of 2010 to agree on legislation that would extend some or all of the Bush–era tax cuts,
Affluent clients who have built up sizable retirement savings and established equity in their homes or businesses should consider ways to protect hard-earned assets from lawsuit, civil claims, or bankruptcy proceedings. Doctors face unique risks due to the nature of their profession. In fact, an astounding 91% of OB-GYNs reported having had at least one
You may have philanthropic clients who are limited to the amount of charitable deduction they can claim due to how much income they report. They may also be interested in creating a tax-free retirement account for themselves or their heirs. Combining these two strategies may make sense. Charitable contribution tax rules at a glance The
There will soon be tax increases for certain individuals that spring from the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, passed earlier this year. One of the goals of the legislation was to expand health insurance coverage to an additional 32 million Americans currently without insurance.
Putnam’s Roth IRA Conversion Evaluator is a quick and visual way to see if a Roth conversion might be right for your client. Answer a few questions and discover the range of options a Roth IRA conversion can provide. The benefit of knowing is a few easy steps away. Please note: Your data will not