When discussing a possible Roth IRA conversion with clients, typically the primary barrier is identifying funds to pay the tax bill. Clients understand the benefits that a tax–free Roth can provide in retirement and to potential heirs, but are challenged by reporting additional income generated from a conversion. Using business–related tax losses to offset a
This year could mark a once-in-a-lifetime event for the estate tax. For the first time since 1915, the country does not have a federal estate tax because the tax was removed temporarily in 2010 as part of the 2001 tax law. This lapse in the law will allow heirs to escape a federal estate tax
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
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,
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.