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Required Minimum Distributions (“RMDs”)

March 15, 2014

What Are RMDs? An RMD is the minimum amount that must be withdrawn from certain retirement plans each year. The IRS calculates the RMD amount by dividing a participant’s account balance as of December 31 of the prior year by an IRS life expectancy factor. For example, suppose you have a 79-year-old retiree with an…

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3 Ways for Higher-Income Taxpayers to Enjoy Tax-Free Roth Accounts

March 14, 2014

Roth IRAs offer substantial benefits. Although contributions aren’t deductible, qualified distributions are tax-free — the growth is never taxed. And unlike traditional IRAs, Roth IRAs have no required minimum distributions. So if you don’t need the money in retirement, you can let the entire balance grow tax-free to benefit your heirs. But modified adjusted gross…

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“Play or Pay” Mandate Postponed

March 13, 2014

The PPACA shared responsibility provision requires “large” employers to provide a “minimum value” of “affordable” health plan coverage to their full-time employees or face a potential penalty. These “play or pay” rules were scheduled to take effect January 1, 2014, but have been postponed until January 1, 2015. In addition, for employers with the equivalent…

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Obama Releases 2015 Budget Proposals

March 12, 2014

President Obama recently unveiled his $3.9 trillion FY 2015 budget proposals, with an emphasis on passing tax reform for families and lower income individuals.  Highlights of the budget proposals include:  Limitations on deductions for higher incomes Tax carried interest as ordinary income Reproposed “Buffet rule” Enhanced Code Sec. 179 expensing Limitations on like-kind exchanges of…

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Don’t Let Estate Taxes Force Your Heirs to Sell the Family Business

March 6, 2014

Many family business owners spend years nurturing their companies with the goal of providing a livelihood for their heirs. But often their estates don’t have enough cash to pay estate taxes and other expenses after they die, which can force the family to sell the business. If your’re concerned that your heirs will face this predicament, ask…

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Avoid the Negative Consequences of Plan Disqualification

February 17, 2014

Correct Any Missteps Before It’s Too Late A retirement plan sponsor has a fiduciary duty to ensure that the plan complies with all federal and state rules and regulations, such as the Internal Revenue Code and ERISA. Plan sponsors must follow the plan’s provisions and cannot deviate from those provisions, unless amending the plan. Not…

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