Category Taxes

FINRA warns about 401(k) Rollovers – Let’s talk again about conflicts of interest!

  FINRA, the Financial Industry Regulatory Authority, is the securities industry’s self-reglatory organization.  They do the various test, deal with broker and advisor registration and monitoring, etc. And FINRA has recently started cracking down on advisors and brokers who are giving questionable advice to investors about how to deal with their 401(k)s and rollovers.  In […]

Forbes/NAPFA iConference virtual conference – going on right now.  (Michael Kitces is talking about fascinating research into a whole new way to think about asset allocation glide-paths in retirement – with *increasing* rather than decreasing equity allocations!) So far, though, it’s a great conference, just like last year. The session on tax planning for 2013 […]

A Powerful Tool for Charitable Gifts

A Powerful Tool for Charitable Gifts  – the Donor-Advised Fund Year-end is a time that many of us think of charity.  And while the tax code encourages giving gifts to charity, if you want to take advantage of the tax break on this year’s taxes, you need to make the gift before year-end. Many of […]

58.7% increase in tax rates at the beginning of 2013 for income above $11,950

Yes, you read that right.  There was a 58.7% increase in tax rates on taxes paid by certain taxpayers as of the beginning of 2013. That’s the increase in capital gains taxes for folks in the highest ordinary tax brackets, due to the increase in the capital gains rate from 15% to 20%, and the […]

A whopping 52.6 percent tax rate on ordinary income

From an article about ranking the tax efficiency of certain income-oriented investments for six-figure earners: Begin by choosing marginal tax rates for both ordinary income and long-term capital gains. Litman Gregory assumed a whopping 52.6 percent rate on ordinary income, which includes 8 percent for state income tax. The federal portion consists of this year’s […]

A brief history of taxes in america (humor, kinda)

A brief history of taxes in america (humor, kinda) [gotta love the mustache-twirling robber barons]http://www.theawl.com/2013/04/a-brief-history-of-taxes-in-america If we cannot cry, we should at least laugh.

John Steele Gordon on the Carried Interest Loophole

The always-worth-reading John Steele Gordon, on the absurdity of the carried-interest tax loophole (which mainly benefits hedge-fund managers): <http://online.wsj.com/article/SB10001424127887323415304578370910199546982.html?mod=ITP_opinion_0&gt; He also describes a bit of the way hedge fund managers are paid.  What isn’t mentioned is that the investors themselves are often getting fleeced, too.  Recently we’ve seen how some of these funds end up […]

Making tax-free transfers from your IRA to a charity

In 2011, there was a provision in the law which allowed one to make direct transfers from one’s IRA to a charity.  By doing so, one could satisfy his RMD requirements while avoiding paying taxes on that transfer.  Moreover, it was a better tax break than if you’d taken the distribution in cash (taxable income, […]

Ultra-Short Summary of American Taxpayer Relief Act of 2012 (HR8 as amended by the Senate)

American Taxpayer Relief Act of 2012 (HR8 as amended by the Senate) The first two items below directly affect nearly every taxpayer. The third affects anyone with earned income, and the fourth affects every married couple. The rest are much narrower in scope (ie. highest income folks, large estates, etc): All Bush-era tax rates made […]

AMT Patch proposed for 2012 and 2013

“The Family and Business Tax Cut Certainty Bill of 2012 (Sen 3521 ) would patch the alternative minimum tax (AMT) for the 2012 and 2013 tax years for an estimated revenue loss of $132.2 billion.” Full text of the bill:  http://www.govtrack.us/congress/bills/112/s3521/text It also extends several other popular tax provisions: the deduction for teachers who buy […]