Finance Decoded

February 14, 2021

        Did you accidentally make an IRA or Roth IRA contribution that you’re now regretting? Luckily, you’ve got options! A recharacterization, in the simplest of terms, is an “undo” that allows you to treat an IRA contribution as if it were made as Roth contributions and vice ...

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      With a New Year comes a fresh start, which means now may be a good time for you to consider whether or not you’re working with the right tax professional. With the April deadline just a couple of months away, you may have already started reviewing your financial documents for ...

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Whether you have left an employer and have an old company retirement plan or want to move your retirement assets to access new investment options, there are many reasons to consider moving retirement assets. However, retirement accounts are like an eggshell—one wrong move and you can break its ...

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With the holiday season upon us, your to-do list might seem endless. While preparing for all of the festivities, have you taken the time to review your end-of-year financial checklist? Though it may be difficult to find time to squeeze this in, it is important to consider whether there are planning ...

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If you have company stock and are looking to withdraw it from your retirement, the net unrealized appreciation (NUA) tax break may be an option you should consider. The NUA process allows you to pay taxes on the appreciation at long-term capital gains rates instead of at higher income tax rates.

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‘Tis the season to deck the halls, light the menorah and help provide peace on earth (or at least to your families) with a well-constructed financial and estate plan! With everyone gathered together for the holiday season, the most wonderful time of year is also the best time to have critical ...

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If you hold both pre-tax and after-tax money in your IRA, you’ve likely heard of the pro-rata rule. It’s important to understand how this rule is calculated and how it can impact your retirement funds. In simple terms, the pro-rata rule is used to determine how much of a distribution is taxable ...

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Funding a Health Savings Account, or HSA, is a great way to save and pay for qualified out-of-pocket medical expenses. But are you familiar with the withdrawal rules that come with these accounts? The penalty for failing to follow HSA distribution rules can result in you not only having to pay ...

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With the holiday season in full swing, you may be considering how you want to make your charitable donations. If you’re an IRA owner, you may want to consider a qualified charitable distribution, or QCD. A QCD is a distribution from an IRA that goes directly to a qualifying charity. Along with ...

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Roth IRA distributions are always tax-free… right? Not necessarily. There are certain circumstances where your Roth IRA distribution could be subject to income tax. Determining whether your withdrawal will be taxed depends on factors such as your age and the type of funds you’re withdrawing. To ...

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Whether you are changing employers or reaching retirement, deciding what to do with your company retirement plan is an important decision with more options than you may expect—six to be exact. Without proper expertise to navigate this landscape, you may not realize the tax savings opportunities you ...

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As a retirement account owner, you’ve probably been warned about the 10% early distribution penalty that applies to taxable distributions made before age 59½. But did you know that if for some reason you need to access your money early, there are exceptions to this rule? Expenses such as medical ...

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This Checklist covers 18 of the most important planning issues to identify and consider before updating their estate plan. It’s structured as follows: Beneficiary & Fiduciary Issues Assets & Property Related Issues Minors & Children Related Issues Other ...

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For some people, leaving a legacy is as simple as naming their spouse as their sole beneficiary, but for many, there is a list of loved ones they want to include. Beneficiary planning can be tricky, and if you’re planning to leave your assets to more than one person, you need to ensure that you’re ...

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  Tax-Loss Harvesting A useful year-end move to counteract capital gains. Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist Even though this may end up being a subpar year for stocks, you may realize capital gains, which is a taxable event. What can you do about ...

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Have you missed the 60-day deadline for completing an IRA rollover due to an error or an unexpected life circumstance? Fortunately, the IRS has created an option for individuals to self-certify that they are eligible for a waiver of the deadline so that they can complete a late rollover. Find ...

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Have you recently inherited a loved one’s retirement assets? If so, you should know that there is an income tax deduction available to you called the income in respect of a decedent, or IRD, deduction. When certain inherited assets are hit with both federal estate and income taxes, this deduction ...

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Did you know there is no minimum age for having an IRA? As long as your child has earned income, you can open an account in their name. Whether they contribute to the IRA with their own money from working or a gift from you, the power of compound interest can help them get a significant head start ...

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As the beneficiary of an inherited IRA, you might be aware of some rules that come with these retirement accounts. However, are you also aware that the rules vary depending on whether you are a spouse, a non-spouse or a trust beneficiary? From required distributions to even the titling of the ...

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An HSA account is one of the most tax-efficient savings accounts available to investors.  While many of the distribution rules are straightforward, there are several exceptions that should be considered before a client takes a distribution from their HSA. What’s a Qualified Medical ...

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Did you know a Health Savings Account, or HSA, offers three different tax advantages? Contributions are deductible, earnings are tax-deferred while in the HSA, and distributions are tax-free when they are used for qualified medical expenses. If you’re enrolled in a high-deductible health ...

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Roth IRA Conversion in the Era of COVID-19 Is it right for you? Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist The COVID-19 pandemic has shaken up nearly every aspect of American life. To say it’s been a difficult time would be an understatement.  However, ...

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If you’re married, planning for retirement usually requires that your nest egg be large enough to shelter two people. Spousal beneficiary mistakes are common and making financial decisions in a time of grief or panic can be especially challenging. Factors such as your age and income needs should ...

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This checklist covers many of the issues to consider during a recession or market correction.  It addresses some strategies particularly useful when the valuations of the markets are low (such as Roth Conversions and gifting strategies) as well strategies to mitigate the negative impact (cash ...

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This checklist includes emergency relief options outlined in:  The CARES Act Families First Coronavirus Response Act Executive orders IRS changes And other relief options specific to COVID-19 as they pertain to individuals  For more information, contact our office at 877-714-2362 ...

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Once you reach age 72, the government requires that a specific minimum amount be withdrawn from your retirement account each year. If you miss the deadline or don’t take enough, Uncle Sam could hit you with a 50% penalty! Did you forget to take a required minimum distribution (RMD) from your ...

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Traditional Vs. Roth IRA Do you know the difference? Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 33.2 million U.S. households. Roth IRAs, however, were created as ...

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Lesser Known Provisions of the SECURE Act What younger investors need to know.   Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist   The SECURE Act passed into law in late 2019 and changed several aspects of retirement investing. These modifications included ...

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Tax Considerations for Retirees Are you aware of these potential tax breaks and tax-saving opportunities? Provided by Walter F. Pardo, Founding Partner An Ed Slott Master Elite IRA Advisor    The federal government offers some major tax breaks for older Americans. Some of these perks ...

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Have you recently lost your spouse and inherited an IRA? In the midst of grieving, determining how you want to handle your new assets may be the last thing on your mind, but there are important decisions to be made. You have a choice to either remain the beneficiary of the account or execute a ...

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