As calendar year 2014 comes to a close I find some people think about making gifts to children or other family members before year-end. Reasons for wanting to make these gifts vary widely including reducing future estate taxes; shifting income to a lower income tax bracket taxpayers; or the simple desire to transfer a particular […]
Government Taxes Gifts To Your Children?
A Thanksgiving Message
With Thanksgiving Day just a few days away, it’s my observation that for most people’s lives become more frantic and hectic. Whether its travel plans or planning the Thanksgiving Day meal, people have more to do and less time to do it. As you go through the hustle and bustle of this season and as […]
Avoiding Taxes on Inherited Home
Reader Question: When a couple’s home is inherited by their children, and the children then sell the home, does the home sale qualify for the tax exemption allowance on the profit without the children meeting the residency requirements (owned and lived in home as primary residence for two out of the previous five years) …assuming […]
The Holiday Savvy Shopper
Retailers are already gearing up for the holiday selling season and I predict it will be filled with bargains for the savvy shopper. This season you’re going to have an opportunity to give great gifts without breaking your piggy bank if you follow these simple guidelines. Set a goal. Let’s start with your number one […]
Medicare Trap Triggered by Roth Conversion
I recently answered a sixty-six-year-old reader’s question about the tax impact of converting his IRA to a Roth IRA. I pointed out that the dollars converted would be treated as ordinary income in the year of conversion and that he should make certain that he had money ‘outside’ his IRA to pay the taxes so […]
Second Marriages and Home Ownership
Reader Question: My husband and I have separate Wills with designated beneficiaries since this is our second marriage. With regard to our home, which we own, if I should die first he would remain living there until he died, then the property would go to our respective beneficiaries to divide. Obviously this would prevent my investment in […]
The Clock is Ticking…for Medicare Open Enrollment
It’s that time of the year again…. Medicare open enrollment. This year open enrollment runs from October 15 until December 7. Below are some points you should consider when deciding which plan is best for you in 2015. For your Medicare coverage, you have two main choices: Original Medicare. With Original Medicare you will want […]
Lump Sum or Lifetime Income?
Reader Question: My former employer has offered a $73K + lump sum payment by Dec., 2014. Otherwise I could elect monthly payments of $530 @ age 65, or $460 to begin Dec, 2014. I am 63 years old in good health. Also how would you suggest investing the lump sum amount? Answer: First, let’s tackle […]
401K or Roth IRA, Which Is Best?
Reader Question: I have both a 401k as well as a Roth IRA. I’m obviously putting enough in at least for the match. Which one should I put additional money in after the match? I’m 30 years old and not sure which one would give me the best tax treatment. E.L. Answer: First, I’m glad […]
My 5 Top Strategies for Your 401K Plan
The 401(k) plan has become the foundation for building wealth for retirement of working Americans. Unfortunately I find that too many people are either not participating in their company 401k plan at all or are under-utilizing it. This is a financial mistake and if you fall into this group, now is the time to put […]