Tax News

Retention of Tax Records

Posted on January 22, 2016 in

Are you looking for guidance on how long you should retain your personal income tax records? These records may have to be produced if IRS (or a state or local taxing authority) was to audit your return or seek to assess or collect a tax. In addition, lenders, co-op boards, or other private parties may require that you produce copies of your tax returns as a condition to lending money, approving a purchase, or otherwise doing business with you. (more…)

The government has a knack for catching on to the most popular loopholes.
There are plenty of tips and tricks to maximizing your retirement benefits, and more than a few are considered “loopholes” that taxpayers have been able to use to circumvent the letter of the law in order to pay less to the government. But as often happens when too many people make use of such shortcuts, the government may move to close three retirement loopholes that have become
increasingly popular as financial advisers have learned how to exploit kinks in the law. (more…)

New IRS guidance on 401(k) rollovers

Good news: If you have after-tax money in your traditional 401(k), 403(b), or other workplace retirement savings account, you can roll it over to a Roth IRA without paying taxes, as long as certain rules are met. A recent clarification from the IRS confirmed this. Previously, the rules weren’t entirely clear. Now it is clear that you can roll after-tax money to a Roth IRA and pretax money to a traditional IRA and avoid creating taxable income. There is one catch: The after-tax and pretax balances must be rolled over at the same time, and in the same proportions as in the 401(k). (more…)

Below is an excerpt of an article by Anne Tergesen concerning 401(k) plans which I wanted to share with you:

When it comes to building retirement wealth, growing numbers of 401(k) participants are seeking help from online advice programs and professional money managers. But is that advice worth paying for? According to a study released May 19, 2014, the answer is an emphatic yes. Between 2006 and 2012, participants in 401(k) plans who paid extra for advice earned an average of 3.32 percentage points more per year, after fees, than those taking do-it-yourself approach. To find out more, read June’s Tax Newsletter.

Read June’s tax Newsletter

Health Care Reform

Posted on July 5, 2014 in

The Affordable Care Act (ACA) has generated a great deal of confusion and concern. Although no tax considerations for individuals are involved, taxpayers who don’t have health care coverage may be subject to a penalty. Even if you already have coverage, you may want to consider alternatives available in the newly created Health Insurance Marketplace. We can help you assess what reform means to you and offer the advice you need to make the best choices.

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