With the introduction of higher tax rates for some taxpayers in 2013 and ongoing tax-reform debate in Washington, it is essential for any comprehensive financial plan to include tax smart planning strategies. Specific income thresholds will trigger the new 3.8% Medicare surtax, income phase-out of itemized deductions, or the highest marginal tax rate. These five
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
With the continuing budget debate on Capitol Hill, the future for tax rates may appear uncertain. A Roth IRA conversion can be a strategic move for clients to hedge against tax rate increases, and shore up tax diversification strategies in retirement. Hear more about these and other strategies for Roth conversions. 284679
With an October 15 deadline to “undo” a Roth IRA conversion, now is an opportune time to reach out to clients who may want to reverse that transaction. Clients who converted a traditional IRA to a Roth IRA in 2012 have until October 15, 2013, to reverse or “recharacterize” the conversion, transferring the assets back
Health-care reform legislation introduced a payroll tax increase and a new Medicare surtax this year. While the rise in payroll tax was automatic for taxpayers with a specific income level, the 3.8% investment surtax does not apply to all forms of income. There are several types of income that are not affected by the tax
The new federal tax law expands the use of Roth IRAs in retirement plans, opening the door for tax diversification. Roth savings accounts were introduced to 401(k) plans by the Economic Growth and Tax Relief Reconciliation Act of 2001. This law allowed for the designation of a Roth 401(k) plan beginning in 2006. These plans
The deadline for making a contribution to an individual retirement account (IRA) for last year is April 15, 2013. As clients seek ways to reduce taxable income, it is an opportune time to talk about IRAs. Consider offering your clients an IRA checkup to determine what they own and how it supports their retirement savings
With marginal tax rates rising for higher income levels, the reduction of some tax preference items, and a new Medicare investment income surtax, income tax planning should be a priority. Here are five strategies that clients can use to mitigate tax obligations today. 1. Invest in municipal bonds for tax-free income Municipal bonds become more
The final quarter may be the busiest time for financial planning as clients focus on preparing for 2013. This year in particular has presented many challenges for clients as they try to grow and protect assets in the face of uncertainty around taxes and fiscal policy. Some key end-of-year strategies for consideration include: Contact clients