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Five year-end planning ideas that could reduce the tax bill

Five year-end planning ideas that could reduce the tax bill

With tax bills among clients’ top concerns, year-end planning offers an opportune time to take advantage of tax-smart strategies and meet 2014 deadlines. Here are five year-end planning ideas that require action by December 31, 2014, that could help you identify ways to build your business. 1. Review required minimum distributions (RMDs). Many investors take

Tax bracket drives strategies

Tax bracket drives strategies

Before taxpayers select year-end planning strategies, it’s important to first calculate their individual tax bracket. The marginal tax bracket will determine which strategies could be beneficial and drive all other financial planning decisions. Chris Hennessey discusses the importance of understanding income levels, while highlighting some ideas for clients in different tax brackets. Consider different strategies:

Year-end retirement planning priorities

Year-end retirement planning priorities

As investors review their investments in the coming weeks, retirement planning is a priority, especially those strategies that involve year-end deadlines. Chris Hennessey identifies several areas that require action before December 31. Retirees age 70½ or older must take required minimum distributions (RMDs) from individual retirement accounts or 401(k) plans by December 31. The Internal

Charitable rollover, other tax breaks could make a comeback

Charitable rollover, other tax breaks could make a comeback

A provision to make tax-free donations to charity from an IRA, tax deductions for certain college expenses, and dozens of other tax breaks known as “tax extenders” could be renewed if Congress acts before the end of the current session. In the next few weeks, Congress must decide whether to restore some or all of

Help prepare clients for the ACA’s side effects

Help prepare clients for the ACA’s side effects

In addition to health-care reform, the Affordable Care Act (ACA) will have an impact on clients’ investments, as they plan to cover health costs and prepare for the possibility of new tax liabilities. Chris Hennessey reviews the top concerns about the ACA for all types of clients. Surtax may hit high earners The ACA established

The urgency behind year-end planning

The urgency behind year-end planning

The end of year is a critical time for financial planning — with many strategies having a December 31 deadline. Chris Hennessey explains why urgency about financial planning moves may be specific to the final quarter of the year, including: required minimum distributions, gifting, funding a 529 college savings plan, or reviewing asset allocations. Investors

A look at the future of health-care reform

A look at the future of health-care reform

Mid-term elections, tort reform, and other policy pressures may alter the way the Affordable Care Act delivers on the promise of health-care reform in the future, but the law will likely remain largely intact. Chris Hennessey discusses several changes that some advocates are proposing. Letting the consumer decide what to buy. The law now requires

Why age matters in health-care premiums

Why age matters in health-care premiums

The effects of the Affordable Care Act on insurance premiums will vary, but some people may see more advantages than others. Chris Hennessey explains why some segments of the population may see a reduction in premiums. Older individuals will benefit Older individuals, particularly those with chronic illnesses, will likely benefit from the ACA. The new

IRS opens door to direct retirement assets to a Roth

IRS opens door to direct retirement assets to a Roth

For 401(k) participants with a mix of pretax and after-tax funds in their retirement plan, planning may be easier following a recent announcement from the Internal Revenue Service. The IRS issued a notice in September that provides clarification on how to distribute these funds. Participants will be able to direct pre-tax funds to a traditional

There’s still time to undo a Roth conversion

There’s still time to undo a Roth conversion

It’s not too late for taxpayers to “undo” a Roth IRA conversion. The deadline to recharacterize — or reverse — the conversion is October 15. It’s an opportune time for advisors to review Roth assets with investors. In general, individuals have until October 15 of the following year to recharacterize a Roth IRA conversion and