No, we don’t mean this Myra or this Myra. We mean this myRA courtesy of our friends at Treasury. We, um, “sat down with myRA” to get to know her. Let’s see what she’s all about: Apollo: When were you born? myRA: President Obama mentioned me in his 2014 State of the Union address. Apollo: [...]
In an attempt to close a ‘loophole’ they claim is exploited by ‘evil one-percenters’ Congress has done away with a very useful planning strategy – File and Suspend. File and Suspend allows spouse #1 to file for and immediately suspend receipt of benefits until a future date up to age 70. This allows spouse #2 [...]
Last week the IRS told us what’s new in 2016. While some items remain unchanged there are interesting developments with 401(k) contribution limits, income tax brackets and deductions, IRA contributions, the estate tax credit, AGI phase outs and more. More than 50 tax-related items were addressed. A partial summary and some of the more interesting [...]
Carl Richard is a believer in The KISS Principle. He spends his time providing financial education by explaining complex strategies and terms using simple, easy to understand diagrams. You can find examples in his weekly “Sketch Guy” column in The New York Times and his book “The Behavior Gap: Simple Ways to Stop Doing Dumb [...]
It’s a common question from clients. “I live in _____ so why do you want me to set up a trust in Alaska?” Financial planners, estate attorneys, wealth managers, CPAs and insurance folks alike have long favored states like Alaska, Delaware, Nevada and South Dakota for trust situs due to their trust-friendly laws enforced by [...]
As the end of the year approaches many people start thinking about Required Minimum Distributions (“RMDs”). While typically a straightforward process (aggregated prior year-end values divided by the appropriate factor from the IRS table) there are some stumbling blocks that often give people fits. AGGREGATED DISTRIBUTION: Distribution from one non-inherited traditional IRA may be used [...]
W. Scott Simon often serves in litigation and arbitrations as an expert witness on fiduciary issues. Similarly he frequently writes about the Uniform Prudent Investor Act. Consider the following from a recent article he authored about the problem with disclosing conflicts of interest: “Disclosures of conflicts made by many financial services providers tell you just [...]
In December 2014 the Achieving Better Life Experience (“ABLE”) provision was signed into law providing a means for saving and paying for disability-related expenses. Recently the IRS issued proposed regulations which may be relied upon until (and if) final regulations are proposed. Highlights include: * States may offer tax-favored accounts or contract with other states [...]
Effective July 9th the IRS amended §401(a)(9) of the Internal Revenue Code. Notice 2015-49 guides that qualified defined benefit plans will generally not be permitted to replace any joint and survivor (“J&S”), single life (“SLA”) or other annuity in current payment status with a lump-sum or other accelerated payment form.
Hey IRS, you want a fight? Bring it on! A recent IRS decision limits individuals to one IRA rollover a year in hopes of avoiding exploitation of a loophole allowing the use of retirement accounts as short-term, tax-free loans The strategy was simple. Withdraw money from an IRA and use it to cover short-term cash [...]