You’d think retirees would get some consideration from the IRS. I mean, they’ve worked their entire adult life, paid their taxes (well, most of them), and paid them no matter what administration was in office or what stupid rules an administration put on the books. Now they’re retired. But it doesn’t mean retirees are exempt from IRS audits. The [...]
It’s fall—leaves are changing color; college football is underway and… it’s time to see if you want to carry your current Medicare plan into 2024. The annual Medicare Open Enrollment period runs from October 15-December 7. During the Medicare Annual Enrollment Period, you can make changes to your Medicare Advantage and Part D prescription drug plans. Multiple changes and [...]
At the very moment IRAs joined the retirement savings universe in 1974, so did Required Minimum Distributions (RMD). The government was more than happy to provide a tax-deferred way to save for the future, but it came with a future reckoning—paying taxes on all the contributions and on all future growth whenever an IRA owner began to take distributions. And [...]
“What in the world does that mean?” I can’t tell you how many times I’ve been asked that question during more than 30 years in the financial industry. Clients naming beneficiaries on IRAs, 401(k) accounts, annuities or insurance policies stop dead-in-their-tracks when asked to decide whether they want beneficiaries to receive proceeds from their account Per Capita or Per Stirpes. [...]
Among savers and investors, the terms IRA, 401(k), and Roth are as common as drinking water, and sometimes the lines between them get blurred and the distinctions are lost. I’ve had multiple clients refer to their IRA as their 401(k) because that’s where the money was before it got rolled over. Many people haven’t been able to tell me whether [...]
Why does everyone think estate planning is so hard? You just split it equally among your heirs and you’re done, right? That’s a simple way to do it, but often, not the best way. Everybody’s family is different and you need to think about the specifics of your family; What’s their situation?; How do you want them to benefit [...]
It wasn’t really a secret, but the IRS didn’t make a lot of noise about it either. In March 2023, the agency quietly changed the rules, issuing Revenue Ruling 2023-2 which has a substantial impact on estate planning and irrevocable trusts. In the last 10 years, irrevocable trusts have been used more frequently to protect family assets from being [...]
When Aretha Franklin, the Queen of Soul, died in August 2018 she left behind a legendary career and a massive music legacy that touched millions of people. She also left an estate worth $80 million and a legendary family controversy because no one could find a Will, a Trust, or any kind of estate plan that outlined her wishes. [...]
It’s going to cost you more. What this time? Health Savings Account Plan deductibles. They’re driven by IRS rules for automatic inflation adjustment. And with inflation continuing to go up, so will next year’s HSA deductibles. In 2024, the minimum deductible for employee-only coverage will be $1,600, up from $1,500 in 2023, and the family coverage deductible will be $3,200, [...]
Officially it’s called the Tax Cuts and Jobs Act (TCJA). More commonly it’s known as the Trump tax cuts. No matter what you call it, the provisions of the Act created in 2017 are set to expire on December 31, 2025. The TCJA made massive changes for businesses and individuals. A tax cut on corporate profits A restructuring of [...]
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