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401k invest wisely

Is The New 401(k) Roth Conversion Option For You?

We’ve already had clients ask about the new 401(k) Roth conversion option bundled in the “fiscal cliff” tax legislation. If you are not familiar with the new provisions, here’s a rundown. Workers of any age can now convert all or part of their traditional 401(k) balance to a Roth 401(k).  Like any Roth conversion, they’ll […]

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dividend taxes

Saved By The Bell: Higher Dividend Taxes Postponed For Most

On January 1, many Americans dodged a bullet. At the end of last year, big tax hikes on dividends seemed a near certainty under the looming “fiscal cliff.” But the surprise compromise reached in Congress means that most households will continue to pay no more than 15% tax on dividends and capital gains. However, some higher-income investors will pay more: […]

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Muni Bonds Win Fans As Taxes Heading Upward

Most investments have slumped since the November 2012 elections. But tax-free municipal bonds have jumped in value, emerging as one of the few winners in the post-election landscape. Expectations are, of course, for taxes to rise in 2013.  That makes most muni bonds, which are exempt from federal taxes, more attractive for taxpayers in higher brackets. In addition, municipal […]

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A Tip For Empty Nesters

Congratulations! Your youngest child is ready to move out of the house, leaving you with the proverbial “empty nest.” That should free up some time and cash, as your parenting responsibilities and household both move into “downsize” mode. Now is your chance to take that class you always wanted to, or volunteer for your favorite cause, or maybe just stop procrastinating […]

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1040 taxes

The Bottom Line on Higher Taxes

You may have already had your fill of news about the “fiscal cliff” and the increased taxes potentially heading our way. But if you’re inclined to look, there’s a very good chart produced by Vanguard illustrating the tax outcome if no new legislation is passed. Taxes will go up for almost everyone on January 1, 2013.  […]

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Smart Tax Moves Before Year-End

Our clients know that toward the end of each year, we review non-retirement portfolios looking for opportunities to harvest capital gains and losses.  This year, that task will have a heightened importance, as capital gains tax rates are likely to rise next year from their historic lows. At present, capital gains tax rates range from a low of […]

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Quote Of The Week: “It’s All Up To Congress”

As we plan for 2013, it’s important to keep a sense of humor.  You’ll see why in this tongue-in-cheek quote from Fidelity Investments about planning for upcoming tax changes in 2013! “As you may be aware, the Bush-era tax cuts of 2001 and 2003 may expire at the end of 2012. Or they may be extended. […]

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Higher 401(k), IRA Contribution Limits in 2013

You can put more money in your IRA and 401(k) accounts next year and get bigger tax deductions. Before year-end, make sure to change your payroll deduction instructions for 2013 to take advantage of the higher limits. For 2013, the IRS just announced higher contribution limits for a range of retirement plans and gifts. Traditional IRA […]

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Five Things You Need To Know About Your IRA’s “Required Minimum Distribution”

It’s the kind of subject that makes most people’s eyes glaze over. But those pesky little “required minimum distributions,” or RMDs, aren’t really that complicated, and they are truly of critical importance.  Mess one up and the IRS will charge you a whopping 50% penalty. Here’s five things you really ought to know about your RMDs. 1.  What are they? […]

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