Welcome StratWealth team and clients! Learn more here.

Tag

Tax Planning Archives | Page 2 of 5 | Wealthspire | Page: 2

tax cheat sheet

2021 Federal & State Estate and Gift Tax Cheat Sheet

By and Guides & Whitepapers
Here we have provided a “cheat sheet” to keep in mind for 2021 federal estate, gift and GST exemptions, as well as exemptions and inheritance tax consequences in specific states where a number of our clients reside. Federal Estate, Gift, and GST Tax Below is a summary of the current federal estate, gift, and generation-skipping transfer tax provisions for 2021. Note that, under current law, the increases in exemption amounts that began in 2018 are set to expire in 2026, at which point they will revert back to the pre-2018 numbers (i.e., $5,490,000 per person, indexed for inflation). Gift and…
Read More

The SECURE Act: What You Need to Know

By Blog
On December 16, 2019, Congress agreed to a spending bill which included a law called the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). The SECURE Act was passed only by the House in the summer, but seemed to be falling by the wayside until it was attached to this spending bill. The new law is effective January 1, 2020. Below is some insight into the major implications of this new law, and some thoughts on how to lessen the impact of the most important change: the removal of the stretch RMD provisions on inherited IRAs. What did…
Read More
gifting 2019

Do I need to make gifts before the end of the year?

By Blog
With all of the political uncertainty and recent changes in the tax law, our clients are wondering what to do about gifting. Below are answers to three commonly asked questions that we are getting this time of year. Note that this blog covers non-charitable gifts.* 1. Do I need to make gifts before the end of the year? Only if you are making annual exclusion gifts. You may give away $15,000 per person ($30,000 if gift-splitting with a spouse) each year tax-free. If you want to use your annual exclusion for 2019, the gift needs to be completed before the…
Read More
roth ira

What is a Mega Backdoor Roth IRA?

By Blog
Most people have heard of Roth IRAs. Those that qualify typically contribute and those that do not qualify can sometimes find a way to do so, as Zach Gering indicates here. In either case, you can do MORE. Take a step back and understand plan types and limits Depending on your current occupational status and business structure, you may or may not be able to open any of the accounts noted above. For starters, any individual can open an IRA (with certain age/income requirements). All of the other plans must be company sponsored. An optimal retirement plan design permits annual…
Read More
backdoor roth contribution

The Benefits of a Backdoor Roth Contribution

By Blog
The most popular retirement account of the current decade is the Roth IRA. It offers tax-free growth, tax-free withdrawals after age 59.5, and no minimum distribution requirements. Unlike traditional IRAs, Roth’s are funded with after-tax dollars. There is no tax deduction for contributing. Evaluating whether to contribute to a pre-tax or Roth IRA is a common exercise. A prevalent misconception is choosing a pre-tax account is the best option. This is mostly because the investor expects that his tax rate will decline in retirement. However, NerdWallet’s Arielle O’Shea and Jonathan Todd published a study from which they concluded the opposite.…
Read More
gst tax

Important Gift Tax and Trust Income Tax Reminders

By Blog
As tax season is now in full swing, below are some important gift tax and trust income tax return reminders: Gift Tax Returns The lifetime exemption from gift and estate tax was $11,180,000 per person in 2018. Currently it is $11,400,000 per person for 2019. Generally, gifts made directly to a medical provider or educational institution on behalf of someone do not count against your lifetime exemption. In addition, donors have an annual exclusion from gift tax of $15,000 per donee. This means that a donor may give $15,000 to each of his or her three children, for example, without…
Read More
moving abroad tax

Moving Abroad for Work? Here’s How You’ll be Taxed

By Blog
The following refers to citizens and resident aliens of the United States who are not otherwise exempt.   Do I still have to pay U.S. income tax? Yep, sorry - the United States is one of only a few countries that taxes its citizens on their worldwide income, regardless of where they earned that money. Additionally, note that because of the Foreign Account Tax Compliance Act of 2010 (FATCA), foreign and offshore banks will report any of your assets held there to the U.S. government.  The reach of the IRS extends far and wide. However, you may be eligible to…
Read More
tax season

Tax Season: It’s Getting to Be That Time of the Year!

By Blog
A Recap of Impending Tax Law Changes I know, it’s not April 15th yet, and I’m not necessarily in any hurry to get there.  But with some substantial changes to the tax law made effective in 2018, I figured it’s not too early to remind everyone what is in store for them from an individual tax perspective heading into filing season 2019: Forms 1040A and 1040EZ have been eliminated, so everyone will be using the standard Form 1040. The Form 1040 has been redesigned and is supplemented by new Schedules 1 through 6: Schedule 1 reports various types of income,…
Read More
tax law changes

The Continuing Impact of the 2017 Tax Cuts and Jobs Act

By Blog
A recap of tax law changes with updates for 2019 taxes On December 22, 2017, the “Tax Cuts and Jobs Act” was passed into law, signifying the most sweeping change to the U.S. tax code in decades. Months of analysis and discussion followed, and frankly, are still occurring today. Because of the many changes taxpayers needed to consider, it doesn’t need to be tax season to remind everyone what is in store for future tax filing years: Forms 1040A and 1040EZ were eliminated, so everyone must the standard Form 1040. The Form 1040 was redesigned and is supplemented by new…
Read More
QCDs

Understanding Qualified Charitable Distributions (QCDs)

By Blog
Don’t make the loss of a tax deduction your reason for not giving Charitable giving stems from an intrinsic desire to express support for causes that are dear to one’s heart. The U.S. government recognizes the social benefit of charitable giving, as such, the tax code provides a tax deduction that ultimately reduces the givers’ taxable income. While most people don’t give solely to obtain a tax deduction, they may be inclined to give more because of the added incentive the tax deduction provides. The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction. The increased standard…
Read More