Currently viewing the tag: "Income tax"

What’s worse than paying income taxes? Paying taxes on the same income twice. Before putting away your 2015 tax folder, make sure your return contained Form 8606 if you have after-tax contributions in your IRA or Roth IRA account.

Tax Form 8606 keeps track of the after-tax balance in an IRA. It’s what accountants […]

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No one ever expects to lose money on an investment but the reality is that everyone’s portfolio will probably have losers at some point.

We diversify our investments to hedge ourselves with the goal of having enough winners to more than offset the positions that aren’t working out. One way to make the best […]

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1. Not getting professional advice. The complexity of the rules governing IRA distribution and beneficiary designations is incredible. Especially where substantial amounts of money are involved, don’t try to “do-it-yourself.” Who to name as beneficiary? When to take distributions? How much to take out? Should you use a trust? Is it best to name your […]

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Part III of this series on the Pennsylvania inheritance tax deals with the taxation of future interests, the sole use trust election, the family exemption and the early payment discount.

The Pennsylvania inheritance tax is an excise tax on the receipt of inherited property by a beneficiary. The rate that applies depends on the beneficiary’s […]

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It’s time for the snow birds to think about their migration to Florida and other parts south.

Man folks make a great deal out of staying for exactly 6 months and a day. They think that being in a state for more than half the year makes them domiciled in the state. Maybe yes, but […]

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Retiring in Pennsylvania

On April 10, 2013 By

It’s a great place to retire, but can be an expensive place to have an estate.

Pennsylvania didn’t stand out in the Tax Foundation’s annual ranking of state & local tax burden based on the 2010 fiscal year. With an average tax burden of 10.2%, Pennsylvania was […]

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Are you looking for a way to squeeze more than 2% from your fixed income investments?

Does your will provide a bequest to a charitable organization? It’s time to consider a charitable remainder annuity trust (CRAT). CRATs provide a way to make a charitable donation during your lifetime while retaining income from those assets. The income is […]

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Congress came through in time to avoid the largest tax increase in history when they passed the American Taxpayer Relief Act of 2012 (ATRA12) on the first of January.

The new law doesn’t eliminate all of the tax increases that were scheduled to take effect.

See Table 1 below for tax changes taking effect January 1, […]

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Be careful to avoid these withdrawal traps.

Thinking about early retirement? There are some traps to be aware of when accessing funds from a retirement account before age 59 ½. You may think that early retirement is a wonderful thing. However, the IRS doesn’t agree. The U.S. tax code generally deems age 59 ½ to […]

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