IS NOW THE TIME FOR SOME LIFE INSURANCE?

By | November 19th, 2018|Estate planning, Retirement, Taxation|

Many people reach a point in life when buying some life insurance is highly advisable.  Once you determine that you need it, the next step is calculating how much you should get and what kind. CAREFUL CALCULATIONS If the coverage is to replace income and support your family, this starts with tallying the costs that [...]

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ARE YOU A MEMBER OF THE SANDWICH GENERATION?

By | October 15th, 2018|Accounting and Auditing, Estate planning, Retirement, Taxation, Uncategorized|

If you’re currently taking care of your children and elderly parents, count yourself among those in the “Sandwich Generation.” Although it may be personally gratifying to help your parents, it can be a financial burden and affect your own estate plan.  Here are some critical steps to take to better manage the situation. IDENTIFY KEY [...]

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TCJA ELIMINATED OPTION TO RECHARACTERIZE ROTHS

By | August 6th, 2018|Accounting and Auditing, Estate planning, Retirement, Taxation, Uncategorized|

The passage of the Tax Cuts and Jobs Act late last year had a marked impact on Roth IRAs: to wit, taxpayers who wish to convert a pretax traditional IRA into a post-tax Roth IRA can no longer “re-characterize” (that is, reverse) the conversion for 2018 and later years. The IRS recently clarified in FAQs [...]

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TAKE NOTE OF THE DISTINCTIVE FEATURES OF ROTH IRAs

By | August 6th, 2018|Accounting and Auditing, Estate planning, Retirement, Taxation|

For some people, Roth IRAs can offer income and estate tax benefits that are preferable to those offered by traditional IRAs.  However, it’s important to take note of just what the distinctive features of Roth IRA are before making the choice. Traditional vs. Roth The biggest difference between traditional and Roth IRAs is how taxes [...]

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Viatical Settlements: A Funding Mechanism for Medical Costs

By | July 10th, 2017|Estate planning|

Someone who’s terminally or chronically ill may lack the funds to cover significant medical costs.  Although insurance policies have historically been held for the death benefits, it may be possible to sell a policy to a viatical settlement provider.  This way, the individual can secure much-needed and generally tax-free cash while still alive.   Buyers [...]

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Beware the Transfer-For-Value Rule When Dealing with Life Insurance

By | June 13th, 2016|Taxation|

Life insurance typically is a key component of an estate plan.  To keep the value of a life insurance policy you already own out of your taxable estate, or to achieve other planning goals, it may make sense to transfer the policy.  But income tax traps exist.  One is the transfer-for-value rule.   So before making [...]

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