Year-end Tax Planning for 2015 There is still some time left to make some income tax savings moves for 2015. Charitable Contributions Make deductible charitable contributions on or before December 31. Taxpayers must be itemizing deductions on IRS Schedule A in order to benefit. Be sure to obtain acknowledgment letters for donations greater than $250.… Read More
President Obama, Nov. 2, signed into law the Bipartisan Budget Act of 2015, a two-year budget deal. The legislation raises the federal debt limit and is paid for in part by provisions eliminating two Social Security retirement benefit claiming strategies, a provision to prevent a significant increase in Medicare Part B premiums for some, and… Read More
On Wednesday, May 17, 2000, Pennsylvania Senate Bill 2 was signed into law by Governor Ridge. The new law is 90 pages long. We’re going to look at about three pages of it. Effective for estates of decedents dying June 30, 2000, there are new rates and new exclusions. To review, the Pennsylvania inheritance tax… Read More
Life insurance and retirement plans compose the largest part of the estate for many people. Insurance death benefits, IRAs, Annuities, and 401 (k)s do not pass under your will. They pass under contract law to those persons or organizations who are designated as the beneficiary. Yet many people don’t review their designations, and don’t make… Read More
What happens if I divorce my spouse and I don’t change the designated beneficiary on my insurance policy? Every state has its own law governing this, but in Pennsylvania the insured’s spouse is considered to have predeceased the insured spouse unless it appears the designation was intended to survive the divorce based on the wording… Read More
3. I gave it to him so I get it back. It’s very common for family members to try to reclaim gifts that they made to the deceased. Again, there is absolutely no legal basis for this. If you bought a TV for Dad and gave it to him, when he passes it goes under… Read More
“But Grandma said I was to have her diamond ring!” Since before Jacob tricked Esau out of his birthright and his father Isaac’s blessing, families have argued, fought, and become embittered over inheritances. Some of the most bitter disputes are over things – cars, silver, guns, china, clocks, and in one case I know of… Read More
8. Putting the wrong investments in the IRA. Don’t put municipal bonds in your IRA. The IRA pays no income tax, it does not need to take a reduced rate to receive tax-free income. Don’t buy an annuity in your IRA. The IRA is already tax deferred, you don’t need to buy a product for… Read More
4. Not beginning the required distributions on time. You are required to begin taking the minimum required distribution (“MRD”) by April 1 of the year following the year in which you attain the age of 70 ½. Making this withdrawal is your responsibility. It is not the responsibility of the broker or mutual fund or… Read More
1. Not getting professional advice. The complexity of the rules governing IRA distribution and beneficiary designations is incredible. Especially where substantial amounts of money are involved, don’t try to “do-it-yourself.” Who to name as beneficiary? When to take distributions? How much to take out? Should you use a trust? Is it best to name your… Read More