by Joel Roettger | May 29, 2018 | Estate Planning, Retirement Assets, Tax
It pays to read the footnotes. IRC § 408A prohibits direct contributions to a Roth IRA if a taxpayer’s AGI exceeds certain limits. (For the 2018 limits, see the table here). One strategy to circumvent this rule is a backdoor Roth IRA contribution. It works like this....
by Joel Roettger | Apr 17, 2018 | Estate Planning, Tax, Trusts
$1 - $2,54910% $2,550 - $9,149$255 plus 24% of the excess over $2,550 $9,150 - $12,499$1,839 plus 35% of the excess over $9,150 > $12,500$3,011.50 plus 37% of the excess over $12,500 These numbers will be adjusted annually for inflation based on the chained consumer...
by Joel Roettger | Jan 24, 2018 | Estate Planning, Retirement Assets, Tax
The IRS has issued new guidance on recharacterization of Roth conversions, and it is good news for taxpayers who converted in 2017. As discussed in a previous post entitled “Last Chance for Risk-Free Roth Conversions,” taxpayers can longer reverse...
by Teresa Klenk | Jan 13, 2018 | Tax
Beginning January 1, 2018, Section 1031 like-kind exchange tax deferral will no longer apply to exchanges of tangible personal property. Under the Tax Cuts and Jobs Act, only real property will qualify for tax deferral in a like-kind exchange. Many exchanges of real...
by Joel Roettger | Dec 21, 2017 | Estate Planning, Tax
Starting in 2018, 529 plans can be used to pay tuition expenses for elementary and secondary schools, thanks to the Tax Cuts and Jobs Act. From the conference report: The [agreement] modifies section 529 plans to allow such plans to distribute not more than $10,000 in...
