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Avoid IRA Rollover Tax Traps

An IRA rollover is usually a tax-smart move, because it allows you to continue to defer taxes on the amount you roll over. But Congress has laid traps for the unwary. Here’s how to avoid the most common IRA rollover tax pitfalls. Arrange Direct Transfers from Company Plans After leaving a job, you may want […]
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Time to Check Your Beneficiary Designations

For 2022, the federal estate tax exemption is $12.06 million (effectively $24.12 million for a married couple). With such a generous exemption, you might assume that you don’t need to worry about the federal estate tax if you die. Plus, after taking a beating in the stock market this year, the assets in your estate may […]
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401(k) Loans: Yay or Nay?

In today’s tough economy, you may find yourself struggling to cover your day-to-day expenses. But rising interest rates are making traditional loans more expensive. In such an environment, you might consider borrowing funds from your 401(k) retirement account, if your plan permits it. But you’ll need to weigh the pros and cons before taking the plunge. […]
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Watch Out for Scam Charities

Have you been contacted by a charity that pulls on your heartstrings and persuades you to open your wallet? There are a multitude of reputable charities doing good deeds and supporting worthy causes. But be aware of a proliferation of scams designed to separate you from your hard-earned money without actual performance of charitable services. […]
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How Will Inflation Affect Your 2023 Tax Bill?

Inflation has been surging this year. The July 2022 consumer price index (CPI) was up 8.5% year over year, according to the latest data from the U.S. Bureau of Labor Statistics. The rate of inflation is expected to stay high for at least the rest of the year. Many taxpayers are understandably concerned about how […]
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7 Deductible Medical Expenses You Might Have Missed

How high can you jump? To claim a deduction for medical expenses on your personal tax return, you have to clear an annual hurdle imposed by the IRS. Although the bar was lowered a few years ago, it still takes a significant leap to clear this threshold. Fortunately, you may be able to count on […]
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Time to Review Related-Party Loans

Interest rates have been at historical lows for several years. This situation may have prompted you to loan money to family members and other related parties at favorable rates, without fear of tax repercussions. However, now that rates are on the rise, you may need to reevaluate related-party loans to ensure they won’t trigger any […]
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Self-Employed Business Owners: What’s the Right Retirement Plan for You?

If you own a successful small business with no employees, you might be ready to set up a retirement plan. Or you might want to upgrade from a more-basic SIMPLE IRA or Simplified Employee Pension (SEP) plan. Here are two options — solo 401(k)s and defined benefit pension plans — to consider if you have […]
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Mid-Year Tax-Planning Ideas for Individuals

The 2022 tax year is well underway, and year end will be here before you know it. Summer is a good time to take proactive steps to help reduce the current year’s tax bill. Here are some federal tax-planning strategies to consider. Eye on Estate Planning Thanks to the Tax Cuts and Jobs Act (TCJA), […]
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SEPs vs. SIMPLE IRAs: Smart Retirement Plan Options for the Newly Self-Employed

Are you new to self-employment? Working for yourself doesn’t mean you must forego tax-advantaged retirement savings. In addition to contributing to a traditional IRA, there are two basic retirement plan options that may make sense for self-employed individuals: Simplified Employee Pensions (SEPs) and SIMPLE IRAs. Here are the pros and cons of these plans. Important: […]