Lower Income in 2020? – Here is a Positive View

During this world pandemic, we have all faced new challenges and may have taken a pay cut or lost a source of income. For some this is viewed as being negative, however there may be a positive light for having lower income this year. Don’t miss: Proposed regulations could make reporting easier for small business …

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Additional Covid-19 Relief: Early Retirement Account Withdrawals

Have you been impacted financially due to the COVID-19 pandemic?  Part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed back in March allows eligible taxpayers to withdraw up to $100,000 from certain retirement plans with favorable tax treatment. According to a recent IRS news release, this relief includes IRAs, 401(k), …

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Long-term care costs: It’s all about location, location, location

One of the largest concerns of many “more mature” clients is their readiness to pay for long-term care if it becomes necessary. With the nursing home costs median over $100,000 per year, a couple’s liquid assets can quickly evaporate if one or both spouses require long-term care for a number of years. The latest annual …

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Dealing with a deceased relative’s debt

If a loved one dies, are you responsible for his or her unpaid debts? The FTC Consumer information website includes helpful information about dealing with the debts of a deceased relative. While FTC’s information is great – here’s my best advice: Check with an Attorney! An attorney can help you navigate the process and deal …

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Inherited IRAs don’t receive bankruptcy code protection

A unanimous Supreme Court decision in the Clark v. Rameker case has held that inherited IRAs do not qualify for a bankruptcy exemption, i.e., inherited IRAs are not protected from creditors of the beneficiary in bankruptcy. The Court ruled that an inherited IRA does not fall under the Bankruptcy Code §522(b)(3)(C) exemption which states that …

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The history of federal estate tax rates

Even though estate taxes don’t affect many people, they have been a hot topic in the political realm after the Tax Cuts and Jobs Act doubled the lifetime exemption. Here’s more on the history of estate tax rates. Don’t miss: Inherited IRAs The estate tax exemption has seen some extremely significant changes since it was …

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Inherited IRAs: How the SECURE Act can affect your distributions after death

On December 20, 2019, President Trump signed the Setting Every Community Up For Retirement Enhancement (SECURE) Act. There has been a lot of buzz around the SECURE Act, especially due to the provisions that affect distributions from inherited individual retirement accounts (IRAs). The largest change the SECURE Act made was to basically eliminate “Stretch IRAs”. …

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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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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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