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3 Things to Do if the Stretch IRA Dies

The House of Representatives voted in favor of the Secure Act 417-3, and the bill is now on a fast track to vote in the Senate. The bill would do away with the tax-planning strategy for inherited IRA commonly referred to as the “stretch IRA.” “Stretching” an IRA allows beneficiaries to take required minimum distributions (RMDs) from an inherited IRA based on their own, longer life expectancies. The Secure Act proposes that beneficiaries must deplete inherited [...]

Rebecca Mack2019-07-05T17:00:57+00:00July 5, 2019|Financial Planning, Tax Strategies|

A Plan to Help Minimize Your Taxes in Retirement

Your steady source of income might disappear in retirement, but unfortunately your taxes probably won’t. Did you know that up to 85% of your Social Security benefit could be taxed? And, retirement account distributions are taxed differently than investment income. If you’ll have multiple income sources, you should know how each is taxed so that you can best plan to minimize your taxes in retirement. Social Security benefits The federal government only taxes Social Security benefits [...]

Rebecca Mack2019-06-24T23:28:38+00:00June 24, 2019|Tax Strategies|

Do You Need to File a Tax Extension?

Doing your taxes might be complicated, but thankfully filing for an extension can help give you some more time to prepare. There are many decisions to be made when preparing your taxes, such as whether you should itemize or take the standard deduction, and finding out how new changes to the tax code affect you. If you need more time to figure these things out, simply fill out an IRS Form 4868. This is the Application [...]

Rebecca Mack2019-04-09T01:57:02+00:00April 9, 2019|Lifestyle, Tax Strategies|

Saving for Retirement While Reducing Your Taxes

This tax season will be the first time Americans are filing under the new tax code, adding complexity, and possibly stress, to the already complex and stressful filing process. But, like with most things in life, a little preparation goes a long way. As you prepare for retirement, you’ll want to think about ways to decrease your tax burden and save money for the future. Maxing out your retirement account contributions, saving in a Health Savings [...]

Rebecca Mack2019-04-02T01:55:34+00:00April 2, 2019|Retirement Planning, Tax Strategies|

Did You Make a Qualified Charitable Distribution this Year?

Did you make an IRA charitable distribution this year? If so, you’ll want to report it on your tax return. Charitable contributions are a great way to reduce your taxable income and build your legacy. After you turn 70 ½, you must take required minimum distribution (RMDs) from your traditional IRA, and you can transfer up to $100,000 per year to charity tax free to count towards your RMD. This is called a qualified charitable distribution [...]

Rebecca Mack2019-03-15T13:44:20+00:00March 15, 2019|Financial Planning, Tax Strategies|

Your Tax Burden in Retirement

Even in retirement, taxes are a guarantee. Your Social Security benefit, capital gains, and retirement account distributions can all be taxed, leaving you with less retirement income than you planned on receiving. Your tax burden is important to consider when planning for retirement, and can be your most significant expense. Here is how common retirement income sources are taxed. While you will gain a new source of income in retirement through Social Security, it could also [...]

Rebecca Mack2019-02-26T02:15:29+00:00February 26, 2019|Retirement, Tax Strategies|

Changes to the Tax Code to Note This Year

Retirees and those near retirement should take note of the changes in the tax code. Also important to note are the rules that are not changing, especially ones regarding retirement plans. Factoring in changes to the tax code can help you plan for your retirement. Don’t overlook these tax breaks and deductions: The standard deduction is now $12,000 for individuals and $24,000 for couples, which is almost twice as much as before. In addition, those 65 and [...]

Rebecca Mack2019-01-25T17:51:44+00:00January 25, 2019|Tax Strategies|

Don’t Overlook these Tax Breaks and Deductions

The 2017 tax reform eliminated several popular deductions in the interest of simplifying the tax code, but left the majority in effect, and actually added a few new one’s while improving others. It’s likely that your tax statements will look at least a little bit different for 2018. Here are some commonly overlooked deductions to take advantage of. Taxes: You have the choice of deducting either state income taxes or state and local sales taxes. This [...]

Rebecca Mack2019-01-11T13:56:34+00:00January 11, 2019|Tax Strategies|

Wrapping Up 2018

While it’s easy to get caught up in the holiday spirit, running out to grab last minute gifts, baking dozens of gingerbread men and trimming your tree, don’t forget about your retirement plan. The end of the year is an important time for retires, and there’s a few things you should wrap up before it ends. One thing that comes with the end of a year is deadlines. An important deadline that can be costly to [...]

Rebecca Mack2018-12-17T23:49:59+00:00December 17, 2018|Financial Planning, Retirement, Tax Strategies|

Tax Efficient Strategies for Charitable Giving

As the seasons start to change and the holidays approach, we are reminded of how fortunate we are and how much we have to be grateful for. We are also reminded that the season of giving is upon us. But, if you’re retired, you may be worried about where extra income will come from and how you can continue to support the charities that are important to you. For retirees, there are some strategies that you [...]

Rebecca Mack2018-11-27T00:23:08+00:00November 27, 2018|Financial Planning, Tax Strategies|