If at least 70 ½ and want to donate from your traditional IRA, DON’T take a distribution to yourself (that is taxable). Instead use the QCD rules…. Transfer up to $105k DIRECTLY from the IRA to charity. It is not taxable to you, does not affect your Adjusted Gross Income and can use it to comply with […]
Category: Retirement Accounts
WHAT IS THE LONG TERM CAPITAL GAIN TAX RATE?
That’s an excellent question. Answer is it depends! Profits from the sale or exchange of capital assets held for over a year generally taxed at 0%, 15% or 20%. The rate depends on income limits that move (adjust for inflation).. In 2024, the 0% rate applies to taxable income up to $47,025 for singles, $63,000 […]
Read More… from WHAT IS THE LONG TERM CAPITAL GAIN TAX RATE?
A word of caution on property transfers…..
Let’s say you gave someone $600k of property at today’s market value. It has been owned along time and only $30k is the original purchase price. We can add improvements to the original $30k say a pool, additional room,…. Add those improvements of $40k to the $30k and we have what we call BASIS of $70k. That […]
MEDICARE WENT UP …. OUCH!
There are reasons for Medicare to Increase…. Your income is higher. That’s good and we hope your income stays higher. But what if it increase because of an unusual event… can we explain that and get it lowered? Well, yes, kind of and maybe. Check this list. Even if your reason is not on this […]
2015 & 2016 Simple IRA Contributions
Maximum Simple IRA contributed by an employee is $12,500 in 2015 and 2016. Catch-up contributions. If permitted by the SIMPLE IRA plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The catch-up contribution limit for SIMPLE IRA plans is $3,000 in 2015 and 2016. […]
2016, 2015 & 2014 IRA’s Simples SEP 410(k) 403(b) Profit-Share
2016 2015 2014 IRAs IRA Contribution Limit $5,500 $5,500 $5,500 IRA Catch-Up Contributions 1,000 1,000 1,000 IRA AGI Deduction Phase-out Starting at Joint Return 98,000 98,000 96,000 Single or Head of Household 61,000 61,000 60,000 SEP SEP Minimum Compensation 600 600 550 SEP Maximum Contribution 53,000 53,000 52,000 SEP Maximum Compensation 265,000 265,000 260,000 […]
Read More… from 2016, 2015 & 2014 IRA’s Simples SEP 410(k) 403(b) Profit-Share
2015 IRA ROLLOVER CHANGE
Something BIG has changed effective Jan 1, 2015. Old law… you could rollover each IRA once in a 12 month period. New law… Limited to one rollover per 12-month period, regardless of the number of IRA accounts. (US Tax Court in Bobrow v Commissioner). […]
2014 SIMPLE IRA SET UP
Who: All employers interested in retirement plans (this is what we do) What: Simple IRA’s When: Can sign up until September 30, 2014 for new plans and fund later. Why: Cause you are going to want to retire someday. It is never too early nor too late to start. How Much Can an Employee Contribute: Up to $12,000 per employee […]
2014 & 2013 Simple IRA Contribution Limit
THE AMOUNTS ARE THE SAME for 2014 and 2013. The Simple IRA contribution limit for employees is $12,000 for 2014 (up from 2012 of $11,500). If over age 50, the limit for 2014 is $14,500 (up from 2012 of $14,000). […]
Regular IRA Maximum Contribution for 2009
$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction. Add $1,000 if over age 50. Can contribute till April 15th, 2010 for 2009. Can file your tax return WITH the Regular IRA as if it has […]