Retirement Watch Weekly
Dealing with Repeal of the Estate Tax
The estate tax was repealed, at least temporarily, but the news is not all good. You know the 2001 tax law phased out the estate tax so it would be eliminated for 2010. But in 2011 the old estate tax law is to be reinstated if Congress does not take action. Everyone assumed Congress would […]
Investing Your IRA to Escape Penalties
Investors are starting to fall into traps with their IRA investments. The law has had these traps for many years. They are being sprung now because more invest-ors are attracted to nontraditional investments. Investments in publicly-traded stocks, bonds, and mutual funds don’t pose problems, but purchases by IRAs of some nontraditional investments are prohibited or […]
Putting RMDs Back in Your Plan
Required minimum distributions (RMDs) from traditional IRAs were suspended only for calendar year 2009. Congress did not extend the suspension, and doesn’t appear to have any interest in extending it. You must return to pre-2009 rules and take RMDs in 2010. The first RMD is due by April 1 of the year after you turn […]
Adding Flexibility with a Disclaimer Trust
It’s tough to keep your estate plan in tune with the rapid pace of change. The estate tax changes. Your family situation and the value of your assets also change. Any of those factors can trigger a need to change your will or other elements of your estate plan, and the pace of change seems […]
Timing is Right for Transferring a Business
The economic decline doesn’t have many positive effects, but it can increase the benefits of estate planning strategies, especially for business owners. The current environment allows you to transfer business interests to your loved ones at a low estate and gift tax cost. Business owners should meet with estate planners and consider accelerating plans to […]
Avoiding Gift Return Problems with the IRS
The IRS recently said it was beginning a program to identify people who do not file required gift tax returns. It believes the program will identify a large amount of unpaid taxes. Gift tax returns must be filed when a gift exceeds the annual gift tax exclusion, currently at $13,000 per recipient per year. Gifts […]
Selling Now to Avoid Higher Taxes Later?
Income taxes are going to increase. That’s the message coming from Washington. We don’t know which taxes will increase or by how much, but there seems to be strong majority support for higher taxes. Rising federal spending also makes higher taxes more likely. At a minimum, it appears the 2003 tax cuts will expire at […]
Knowing When Long Term Care Insurance is for You
Insurers and insurance agents often are mystified at the numbers. Despite their efforts to sell long-term care insurance policies, only a small percentage of the potential buyers own LTCI. I’m not bothered when insurers miss profit opportunities. But I am concerned when people don’t protect themselves by purchasing insurance they should have. Let’s take a […]
