Retirement contribution limits increasing in 2019

The IRS recently issued technical guidance relating to changes for pension plans and retirement accounts for tax year 2019. The biggest changes relate to the amounts employees can contribute to various types of retirement plans. The good news for you is that retirement contribution limits are going up. Retirement contribution limits The contribution limit for …

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How can you benefit from an 83(b) election?

When is an 83(b) election appropriate to make and what are some of the benefits from it? Section 83 applies to employees who receive stock that is subject to vesting. It is an election that would allow the taxpayer to be taxed at the time of the receipt of the property. There are various examples …

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Treasury ends myRA low income retirement savings plan

The myRA (“my retirement account”), a savings account designed to help low and middle-income savers put money away for retirement, is being shut down by the U.S. Treasury Department. Citing lack of participation relative to the cost of maintaining the program, U.S. Treasurer Jovita Carranza, stated “The myRA program was created to help low to …

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Foreign earned income exclusion & retirement savings

Do you think your accountant asks you too many questions? Do you feel interrogated? I’d just like to remind you that we are on your side and we aren’t the ones issuing penalties. We are here to help prevent those penalties, but we can only use the information that is given to us (shocking, I …

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Is the death of the stretch IRA imminent?

We may soon see the end of a valuable estate planning tool known as the stretch IRA, which allows the tax deferred status of an inherited individual retirement account (IRA) for as long as possible when the beneficiary is someone other than a spouse. This tool is typical of the planning currently being done with …

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Advantages of a Roth IRA for retirement

Saving for the future can be a daunting task if you are unsure where to start or what the advantages of each type of saving can do for you. Let’s take a minute to look at the advantages of a Roth IRA. A Roth Individual Retirement Account (IRA) is an account you open and manage …

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Out of state pension income – who gets your taxes?

The best part of being retired is no doubt the freedom of movement. This freedom allows retirees to live wherever they want and to move whenever they want. (Oh, the joy!) They may decide to move to someplace warmer, someplace cheaper, or even someplace closer to their kids or grandkids. The fact is that many …

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Get your Social Security Form SSA-1099 online

Sometimes a taxpayer’s Social Security tax form goes missing. You don’t need to visit a Social Security office to get a copy of your Form SSA-1099 or SSA-1042S to do your tax return. The Social Security Administration has made your statement available online. As reported by SocialSecurity.gov, an SSA-1099 is a tax form Social Security …

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The traditional IRA and deductibility

Traditional IRAs are a great way to lower your taxable income and save for retirement. For 2016, you can contribute up to $5,500 to a traditional IRA plus an additional $1,000 if you’re age 50 and older. In order to contribute to an IRA, you must have “earned income”. Generally speaking, this is earnings from …

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Hardship Distributions

There may be a point in your life when you have an event that requires some cash. If you do not have that cash on hand, you may be forced to look into other options such as selling assets. Another option could be a hardship distribution from your retirement plan. A hardship distribution is when …

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