Personal Finance

We are dedicated to keeping clients abreast of the latest developments and tax-saving strategies. This section includes a library of hundreds of timely articles about business, taxes, finances, trends and the like. The articles are categorized by subject matter, which can be accessed from the links. Click on your topic of interest and find a wealth of information.

401(k) Contribution Limits

Many employers offer what are commonly referred to as 401(k) plans, named after the tax code section that created the plans. These plans allow employees to defer part of their earnings for retirement. Some employers offer matching contributions that increase...

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Don't Mix Required Minimum Distributions!

Taxpayers who have reached the age of 70½ and have qualified retirement plans are generally required to take minimum distributions from those plans annually. Quite frequently, taxpayers have multiple IRA accounts in addition to one or more types...

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Substantially Equal Payment Exception

The decline in the stock market has adversely affected the value of taxpayer’s retirement investments. This decline in value of retirement accounts has uniquely affected taxpayers who have taken early retirement.Generally, taxpayers who withdraw...

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Pension Start-Up Credit

This is a nonrefundable income tax credit for 50% of the administrative and retirement-education expenses for any small business (less than 100 employees) that adopts a new qualified defined benefit or defined contribution plan (including a Code Sec....

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Avoiding Premature Traditional IRA Distribution Penalties

You may encounter certain financial situations making it necessary to withdraw funds from your IRA account. Funds withdrawn from a Traditional IRA are taxed at the regular income tax rates AND are subject to a 10% early withdrawal penalty if you are under...

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Parents Should Encourage Roth IRAs For Their Children

The long-term benefits of tax-free accumulation provided by Roth IRAs are hard to ignore. Parents can do their children a real service by encouraging them to establish a Roth IRA at the first opportunity. A Roth IRA, left untouched until retirement, will...

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Saver's Credit

The Saver's Credit provides a nonrefundable tax credit for contributions made by eligible, low income taxpayers to IRAs and qualified elective income deferrals. The plan provides incentives for lower income individuals to save for their retirement through...

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Self-Employed Pension Plan Contribution Limits

Tax laws provide for plans that allow self-employed individuals to establish retirement plans for themselves and their employees, if they have any. Those most frequently encountered are the SEP (Simplified Employee Pension) and Keogh Profit Sharing Plans....

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How Taxable Distributions from a Roth IRA are Determined

Withdrawals from a Roth IRA are tax-free if the funds have met the five year aging requirement and the following criteria is met. The account owner is at least 59-1/2, or The funds are used for a qualified first-time home purchase (up to $10,000),...

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Planning Your Taxable IRA Withdrawals

Your age at the time you make a taxable withdrawal from your Traditional IRA account can make a big difference in the amount of tax you will pay. Generally, there are three periods within your lifetime where different tax rules apply: Under Age 59½...

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Minimum Required IRA Distributions

Note – Required minimum distributions were suspended for the 2009 tax year. However, this suspension does not apply to delayed 2008 distributions by a taxpayer who turned 70½ during 2008. That suspension does not apply to 2010.The IRS does...

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IRA Contribution Limits and Catch-Up Contributions

For those who annually contribute to their IRA account and wish they could contribute more, there is good news. The annual contribution limit is inflation adjusted each year and is slowly increasing. Taxpayers 50 and older are allowed larger contributions...

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Retired Spouse IRA Strategy

When one spouse works and the other does not, tax law allows the non-working spouse to base their contribution to an IRA on the income of the working spouse.This tax benefit is frequently overlooked when spouses have been working and basing their individual...

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Roth Conversion Limitations Eliminated

Beginning in 2010, legislation:(1) Eliminates the $100,000 modified AGI limit on conversions of traditional IRAs to Roth IRAs, and (2) Permits married taxpayers filing a separate return to convert amounts in a traditional IRA into a Roth IRA. Under prior...

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