Roth IRA conversions are on the rise following tax law changes — expanding access for more clients to take advantage of the opportunity to diversify the tax status of their retirement savings. Converting tax-deferred retirement assets, such as traditional IRAs, to a Roth increased significantly in 2010. This took place after new tax provisions were
Putnam’s 2014 tax rate chart is a useful reference to share with clients and other professional relationships, such as certified public accountants. Putnam Investments: 2014 tax rates, schedules, and contribution limits from Putnam Investments 286034
Some energy tax credits, along with deductions for college expenses and charitable giving, are among dozens of tax breaks that expired at the end of 2013 and will not be reinstated unless Congress takes action. The Joint Committee on Taxation reports that 55 temporary tax provisions, also known as “tax extenders” because they are often
Approximately four million taxpayers are expected to owe alternative minimum tax (AMT), despite congressional action to adjust the exemption level. Introduced in 1969, the AMT is intended to ensure that wealthy taxpayers could not avoid income tax by exploiting weaknesses in the tax code. Since the AMT was not indexed for inflation, the number of
A bipartisan Budget Conference Committee this week announced a budget deal that caps federal government spending for the next two fiscal years. The plan, which requires approval from the full House and Senate, would also trim $63 billion from automatic spending cuts through sequestration, without the need for taxes. Although the plan does not address
The Internal Revenue Service requires retirees to take annual minimum distributions from individual retirement accounts (IRAs). In situations where clients don’t rely on that money for income, they may consider making a charitable donation with the proceeds. IRA account owners must start taking required minimum distributions at age 70½, and report the distribution as taxable
Year-end tax planning is an opportune time to connect with clients and review some key topics, including IRA-required minimum distributions, tax-loss harvesting, and annual gifting strategies. 284778
Exclusively for financial advisors, Putnam’s wealth management team leads a call on recent budget proposals and how investors can prepare for this tax season. Topics include: Post-government shutdown update: Where things stand today What’s ahead: Budget Conference Committee proposal, government funding, and debt ceiling You and your clients: Year-end wealth management planning ideas Featuring: Chris
As year-end approaches, it is a good opportunity to review your clients’ portfolios to ensure their investments stay on track to meet their goals, and to take advantage of strategies that may benefit your clients in today’s tax landscape. There may be certain strategies that need to be implemented before year’s end, and there are
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