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While several tax provisions set to expire this year are putting pressure on college savings, there are no legislative changes currently proposed that would impact 529 savings plans. If Congress does not act, the contribution limits for Coverdell education saving accounts will be reduced after December 31, 2012. The current maximum contribution is $2,000 per
As Congress prepares for its August recess, the Democrat-led Senate and Republican-led House are unveiling proposals to address the expiring Bush-era tax cuts. While both political parties appear to be sensitive to the potentially damaging impact of the so-called “fiscal cliff” in 2013, there are some key differences on how each would address the issues.
Retirement accounts not only help investors save in a tax-advantaged manner, they also can provide important asset protection benefits as well. Retirement accounts generally fall into two categories — those considered “qualified” under the Employee Retirement Income Security Act of 1974 (ERISA) and those that are not, including IRAs. ERISA plans are given full protection
While most clients have an understanding of asset allocation, many are not aware of the term asset location. This refers to how client assets are held based on the tax characteristic of the underlying account — taxable, tax deferred, and tax free. Since taxes always pose a risk to clients’ wealth and the prospect exists
Now that the Supreme Court has ruled the health-care reform law (with one exception related to Medicaid expansion) as constitutional, questions on specific provisions will undoubtedly emerge. During the Court’s deliberation, much of the attention focused on the individual mandate to purchase insurance. While a majority of justices concluded that the individual mandate violated terms
The U.S. Supreme Court ruled Thursday to uphold the federal health-care reform law, voting in favor of a mandate that requires most individuals to buy health insurance or pay a penalty. In a 5–4 vote, the Court said that the mandate is constitutional when viewed as a tax. The law’s “requirement that certain individuals pay
Tax uncertainty has returned as a dominant theme in financial planning this year. With many federal tax programs slated to expire at the end of 2012, advisors are looking for insights on policy outcomes and what strategies they can use to mitigate the effects of potential higher tax rates. In this latest video, financial-planning experts
With major changes to estate and gift tax rules on the horizon in 2013, affluent investors should consider taking action now to plan a financial legacy. Download Putnam’s new investor education piece, Gifting opportunities in 2012, for details on: The federal gift tax rules Rules about lifetime gifts How gifting strategies may skip a generation
While the U.S. Supreme Court continues to review the constitutionality of the federal health insurance mandate passed in 2010, new taxes that were also created by the law will likely remain. Beginning in 2013, two taxes are set to take effect: a 3.8% Medicare surtax on net investment income, and an additional 0.9% Medicare payroll
Finding the ideal place to retire means weighing many pros and cons. The size of the tax bite can vary greatly by state. Use this interactive graphic to see how the states measure up. Click on the map below to launch the interactive graphic. All data is current as of 10/21/11 and is subject to