In the new tax law, there’s no going back (on Roth Conversions). As a result of the new legislation, taxpayers are no longer able to “recharacterize”, or undo, a previously executed Roth conversion. Roth conversions allow for an individual to convert some, or all, of an Individual Retirement Account (IRA) into a Roth IRA, subjecting … Continued
The Qualified Charitable Distribution (QCD) remains permanent. Qualified Charitable Distributions (QCD) were made permanent by the Protecting Americans from Tax Hikes (PATH) Act of 2015 and were untouched by this new tax overhaul. IRA owners age 70½ or older can distribute up to $100,000 per year from their IRA directly to charitable organizations. These distributions … Continued
The tax law changes the time frame for loan repayments from a 401(k). 401(k)’s were largely left alone in this new tax bill, which is a positive outcome for employees who contribute to their company 401(k) plans. The 2018 maximum contribution to a 401(k) plan remains at $18,500, plus a catch up of an additional … Continued
A major dilemma with navigating the divorce process is that it forces a person into an extremely emotional and gut-wrenching situation, and yet also requires extremely logical decision making to avoid major financial and legal mistakes. A quote by Winston Churchill – who was in the thick of trying to save his country while under … Continued
As year-end approaches, it is time to review strategic planning opportunities with your trusted advisors. As we await the outcome of the tax reform bill, it is a good time to start the dialogue and prepare to act. With that in mind, here is a list of end-of-the-year financial tasks for your consideration. Tax-Loss Harvesting … Continued
It is not unusual here in Silicon Valley for employers to offer their employees the opportunity to acquire company stock as an investment alternative in their 401(k) plans. Employees may acquire equity shares using pre-tax dollars, or even better, at no cost when shares are granted as a matching contribution. But eventually, whether because of … Continued
Nonqualified Deferred Compensation (NQDC) Plans are a benefit often offered by corporations to high ranking executives, usually Directors and above. They are distinctly different from qualified retirement plans such as pensions or 401(k)s, and since NQDC plans are not widely offered, the pros and cons of participating are not widely understood. Whether to participate is … Continued
With Republicans controlling both the White House and Congress, there is an increased likelihood of tax reform legislation hitting the debate floor. Proposals by President Trump and the House Ways and Means Committee appear to support the reduction of marginal tax rates and modification of itemized deductions which will mute the taxable benefits of gifting … Continued
The decision to move into a Continuing Care Retirement Community (CCRC) is a major life event that warrants careful planning to ensure long term financial sustainability. Certainly, there are personal and emotional considerations to explore when facing this major decision; however, as you get to the point of considering a specific CCRC you will need … Continued
There has been great controversy lately about regulatory changes impacting the financial industry. One set of new rules in particular – the Department of Labor’s extension of the fiduciary standard to all those companies and agents providing services and advice to investors on their retirement assets – has generated both action and debate. DOL became … Continued