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Borrowing Money from Your 401(k) – Good idea? …not so much
Borrowing Money from Your 401(k) – Good idea? …not so much Too many are dipping into their employer sponsored retirement plans 401(k) using the lending feature. Unfortunately, many are later faced with a tax dilemma. Borrowing Money from Your 401(k) For years you have put away 6% of your pay into your employer provided 401(k) retirement savings account. Your employer may have even matched 50% of your contribution. Now you want to take some of this money out in the form of a loan to help pay your bills or to buy a car. Before you take action, here are
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Understanding Tax Terms: Structuring – IRS has broad authority to seize bank accounts
Understanding Tax Terms: Structuring IRS has broad authority to seize bank accounts The IRS has broad powers to seize bank accounts if it believes there is criminal activity and you are actively trying to avoid their financial transaction reporting requirements. Here is what you should know. Understanding Tax Terms: Structuring If someone manipulates cash transactions to avoid required bank reporting to the Treasury Department, they are using the technique of structuring their transactions. Knowing what is reported and the power given to the IRS to seize related assets can be important. Background In an effort to identify questionable illegal transactions,
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Leveraging Gift Rules During Retirement
Leveraging Gift Rules During Retirement Wish to transfer some of your assets to your children or grandchildren tax-free? Understanding the annual gift limits is a good place to start Leveraging Gift Rules During Retirement As you or family members approach retirement years, it is important to have a basic understanding of the IRS gift giving rules. With this understanding, there are opportunities to leverage this tax law without creating a tax problem. The rule You may give up to $14,000 to any individual (donee) in 2016 and avoid any gift tax filing requirements. If married you and your spouse may
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Retirement Basics: Understanding Tax Efficiency
Retirement Basics: Understanding Tax Efficiency Managing your taxable income during retirement can be complicated. Social Security Retirement benefits, retirement plan distributions and supplemental income can quickly impact the amount of tax you must pay. Here is something to consider. One of the basics in retirement is to be as tax efficient with your income as possible. In 2016, income tax rates range from 0 – 39.6% plus a potential 3.8% net investment tax. Understanding how these progressive tax rates apply to ordinary income creates a tremendous retirement planning opportunity. Many retirees can control their taxable income each year by the
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Prepare Now for Future Refund Delays – IRS now required to delay refunds to many taxpayers
Prepare Now for Future Refund Delays – IRS now required to delay refunds to many taxpayers As part of recent tax legislation, the IRS is now mandated to delay sending out some refunds to taxpayers beginning with 2016 tax returns. If impacted, you will need to plan for this delay. Topline: If next year’s tax return claims an Earned Income Tax Credit or the Additional Child Tax Credit your refund will be held by the IRS until February 15th. The delay in sending out tax refunds is mandated by recent tax law legislation because of the proliferation of identity theft
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