No Raise for Social Security Retirees in 2021
The crystal balls are coming out early this year as financial prognosticators make projections about Social Security payouts in 2021. Because of the COVID-19 pandemic and subsequent U.S. lockdown of both people and the economy, there is a growing belief that there will be little or no Social Security cost-of-living adjustment (COLA) next year based on economic facts and the [...]
Good Bye Stretch IRA—Hello Charitable Remainder Trust
The government giveth, and the government taketh away. And so it is with the Stretch IRA. For years, the stretch IRA has been a financial planning strategy used to extend the tax-deferred status of an IRA by passing it on to a non-spouse beneficiary, such as children or grandchildren, who then enjoyed the tax benefits “stretched” over their lifetimes. With [...]
7 Estate Planning Potholes
Estate planning. It’s such a noble phrase. It conjures up images of passing on to your loved ones a lifetime of hard work and success—leaving a legacy. But the road to distributing your estate is filled with potholes that may hijack your good intentions. Pothole # 1. Probate Court. If you have a will, your estate will go through [...]
The Economic Relief Bill Makes It Easier to Donate to Charity
When the 2017 Tax Cuts and Jobs Act (TCJA) was passed it changed the rules about deductions for charitable giving. Under current law the only way to deduct charitable gifts is to itemize on your tax return. Because of that, giving to charities has fallen substantially. In 2018 almost 32 million Americans made charitable donations. In 2019 that number dropped [...]
New Retirement Account Rules – COVID-19
The Coronavirus is changing the landscape, as we know it, in almost every part of life. Unquestionably, it’s also shaking up the financial universe and changing rules that have been etched in stone for decades, and retirement accounts are no exception. With the Coronavirus Aid, Relief, and Economic Security Act (CARE) now law, Americans 72 years old and older get [...]
2019 IRA Contributions Delay
As a result of the COVID-19 pandemic, U.S. Treasury Secretary Steve Mnuchin extended the 2019 tax filing date to July 15. As a result, it also extends the deadline for making a 2019 contribution to your Individual Retirement Account (IRA) or Roth IRA. You now have until July 15 to make last year’s contributions. According to the Internal Revenue Code, [...]
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