On Friday, December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The broad intent of the legislation is to make it easier for families to save more for retirement, but it also includes several unfavorable provisions intended to offset the loss of tax revenue likely to result…
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Annual contribution limits for retirement savings accounts for 2019 and 2020, as established by the IRS, are listed below. Please keep in mind that contributions to Traditional IRAs, Roth IRAs, and SEP IRAs can be made up until the time your tax return is due, including extensions.
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Reprinted with permission from Schanel and Associates, CPA. www.schanelcpa.com. Original Post: October 04, 2019 When an investor sells a stock or mutual fund that produces a loss, this capital loss reduces taxable income by first offsetting any capital gains, and then by reducing taxable income up to $3,000. Net capital losses in excess of…
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In the past, when it came to income taxes, people who were charitably inclined could make charitable gifts to reduce their taxable income. While that opportunity is still available under the new tax law, the standard deduction is now much higher ($12,200 for single and $24,400 for couples under 65 in 2019) and, as a…
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Annual contribution limits for retirement savings accounts for 2018 and 2019, as established by the IRS, are listed below. Please keep in mind that contributions to Traditional IRAs, Roth IRAs, and SEP IRAs can be made up until the time your tax return is due, including extensions. 2018 2019 Maximum Annual Traditional IRA contribution (under…
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Most of us have heard of asset allocation – the process of dividing a portfolio’s assets across various parts of the market according to an investment plan that takes into account an investors goals and risk tolerance. Asset location, on the other hand, is a tax minimization strategy that takes into account how different…
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One of the major changes that were made to the tax code by the Tax Cuts and Jobs Act of 2017 was the expansion of the Standard Deduction to $12,000 for individuals and $24,000 for married couples. This means that going forward, many more taxpayers will be taking the standard deduction rather than itemizing.
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One of the major changes resulting from the passage of the Tax Cuts and Jobs Act was the elimination of all miscellaneous itemized deductions. This category of deductions included unreimbursed job expenses, tax preparation fees, and investment advisory fees.
DetailsAnnuities are complicated products that often cause much confusion for annuity owners, let alone their beneficiaries. There can be significant tax consequences associated with the inheritance of an annuity held in a non-qualified account that can substantially impact the total dollars received by a non-spouse beneficiary. If you are the beneficiary of an annuity, there…
DetailsAn investment portfolio with a mix of stocks and bonds will produce three types of investment return: interest, dividends and capital gains. Added together, they make up what is known as “total return”. Inside an IRA or other qualified account, the relative mix of investment return does not matter. A 5% return is a 5% return, regardless of whether it comes from interest, dividends or capital gains. In a taxable investment account, however, the story is much different.
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