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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
Some 401(k) plans allow participants to transfer money while they are still working. If your plan provides for in-service withdrawals, funds may be transferred to an individual retirement account, which could provide access to more investment options and the ability to consolidate accounts. Transferring funds out of a 401(k) could have some disadvantages, however, such
Married couples have multiple options to claim Social Security in retirement, including specific strategies that use the timing of the claim to maximize spousal benefits. In certain cases, these strategies can result in an increase in both lifetime and survivor benefits. Two of the most common strategies are restricted application and file and suspend. Here
Most retirees will rely on Social Security for retirement income, but those who claim the benefit too early may be short-changing themselves. Social Security provides a retirement income stream Social Security plays a critical role in any comprehensive and sustainable retirement income plan. Social Security benefits currently provide more than half of retirement income for
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
December can be a busy month for clients, particularly those 70½ and older who must take required minimum distributions from their retirement accounts before year-end. This requirement may present a planning opportunity to meet with clients who may not rely on these distributions for income. Help family members save for college Grandparents may use RMDs
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