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A homestead exemption can help clients protect their primary residence from creditors’ claims, but it is important that clients understand the laws that are specific to their state. In most states homestead protection is limited, based on when the property was acquired, and caps exist on the amount of home equity that can be protected.
If clients are stinging from this year’s tax bill, it’s time to consider strategies that may improve the situation for next year. The 2013 tax year is the first that some taxpayers saw the difference in their bills due to higher marginal income tax rates and new taxes resulting from the health-care reform law, including
A recent decision by the United States Tax Court limits the number of IRA rollovers that an individual can do in a year. While the new ruling may cause confusion or concern for some clients, the limit does not apply to direct transfers. IRA owners may move funds from one IRA to another either by
More than 7 million Americans signed up for health insurance on the federal website, meeting the March 31, 2014 deadline for the Patient Protection and Affordable Care Act (ACA). In addition to boosting the number of insured, the ACA set new standards for the quality of insurance coverage. Requiring consumers to purchase specific levels of
Many savers are not sure how much money they can withdraw in retirement and help their savings last. In fact, 88% of participants in the Employee Benefit Research Institute’s 2014 confidence survey, said it would be valuable to receive a recommendation for a monthly withdrawal rate from the financial firm that handles their plan. Accumulating
The use of the Roth IRA has increased dramatically since its introduction in 1997, following passage of the Taxpayer Relief Act. Assets in Roth IRAs more than quadrupled in the past decade to $420 billion in 2012, held by nearly 20 million households, according to the Investment Company Institute. Most recently, the IRS reported a
This year marks a pivotal time for the implementation of federal health-care reform as consumers face some key deadlines, including the requirement to obtain insurance coverage. With the fundamental changes in the nation’s health-care system as well as the steady stream of media coverage, it is likely that clients will have many questions about the
With the April 15 deadline approaching for making a 2013 tax year contribution to an individual retirement account, it is a good time to talk about tax strategy. And with varying types of IRAs available, clients of all income levels may benefit. Higher-income clients who may not be eligible to contribute to a Traditional or
Financial advisors can lose between 80% and 90% of their business when a client dies, according to Financial Planning news. The challenge for advisors is to develop family relationships in order to continue to work with the next generation after a client passes away. There can be obstacles, such as geographic proximity, that make it
An obscure rule for tax-savings on highly-appreciated company stock may be more appealing to clients following additional clarification and guidance from the Internal Revenue Service on the investment income surtax. Federal laws include special tax treatment for certain distributions of company stock held within a retirement plan. Under this rule, only the cost basis of