By strategically managing your tax payments, both in amount and timing, you can significantly enhance your chances of achieving your financial goals. This is why tax planning is such an integral part of financial planning. In this article, we will explore five essential tax concepts that the planners at Core Wealth Management consistently utilize. While…
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While tax preparation and tax planning are both critical components of managing your financial health, they serve distinctly different purposes. It’s essential to understand the difference between these two processes. Tax preparation focuses on reporting past financial activities. This involves compiling and submitting tax returns to the IRS to report income, deductions, and credits for…
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Baby boomers, the generation born between 1946 and 1964, are currently between the ages of 60-78. Most are retired or contemplating retirement. There are several planning considerations for baby boomers to be cognizant of in terms of cash flow and tax planning, both prior to and throughout the retirement years. Retirement Plan Contributions – Baby…
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Understanding the Federal gift tax is essential for sound financial planning. This article aims to explain key concepts, debunk some common misconceptions, and outline some practical strategies for those who wish to incorporate gifting into their financial plan. A gift is a transfer of property. The IRS considers a gift to be any transfer of cash…
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Those who reach age 72 in 2023 or beyond now have more time to opportunistically take distributions from their tax-deferred accounts in efforts to minimize their tax liability over their retirement years.1 For those who will turn 72 in 2023-2031, RMDs must begin at age 73; for those who turn 72 in 2032 or later, Required…
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Florida residents can file for a homestead exemption on their primary residence as a means to reduce property taxes. What is the Florida Homestead Exemption? By filing for the Homestead Exemption, it can result in exempting up to $50,000 of your home’s assessed value from property tax liability. The first $25,000 of the home’s assessed…
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As we approach the end of the year, it is prudent to review your situation and make sure that you have taken advantage of all that you can from a financial planning standpoint before December 31st, as well as be sure you are positioned well for the year ahead. With that in mind, here are…
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A Roth IRA is perhaps the most tax-friendly asset that an heir can inherit. However, the rules regarding distributions can be somewhat complicated. The Q&A below provides a brief overview of the rules regarding Inherited Roth IRAs. If I inherit a Roth IRA, what are my options? Since the passage of the SECURE Act in…
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There are several provisions in the CARES Act, which was signed into law on March 27, 2020, that provide flexibility to retirement account owners. In a previous blog post, we discuss the suspension of Minimum Distribution Requirements for 2020. But perhaps the most significant change to IRAs under the CARES Act was the establishment of…
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Included in the CARES Act, which was signed into law on Friday, March 27th, 2020, are provisions related to tax-deferred retirement plans/IRAs and minimum distribution requirements for 2020. Specifically, regardless of your age, all minimum distribution requirements from tax-deferred retirement plans and IRAs have been suspended for 2020. Of course, you can take withdrawals if…
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