A number of figures used in tax and retirement planning have been updated for 2010.  Most limits for pension and IRA contributions have been unchanged.  For example:

1. The maximum contribution that can be made to a defined contribution plan in 2010 under Section 415 is the lesser of $49,000 or 100 percent of compensation—the same limit as in 2009. Read More

Most closely-held business owners are on a constant search for tax leverage with regard to fringe benefits for the owners and their employees.

Pension plans create income tax deductions for the business, and allow employees to exclude contributions from their taxable income.  However, the employer must include all eligible employees in the plan, and retirement benefits are generally taxable to the participants. Read More

Individuals changing jobs may have substantial pension balances that need to be dealt with.  Often they want to defer taxes on the pension plan balances and transfer the money to another plan over which they have more control.

Others with IRA balances may be interested in making a tax-free transfer to a new IRA custodian, or in splitting the current IRA account for various reasons. Read More

Things to Consider

Those considering starting the estate planning process-perhaps by visiting an attorney about a will or trust-usually have one or more questions:

1. Why do I need to prepare a will or trust at all?
2. Do I need a living trust?
3. How can I protect my young children?
4. How can I protect my special needs relative?
5. How do we arrange our affairs to adequately protect all sides of our blended family?
6. How can I keep peace in the family after I’m gone? Read More

Things to Consider

Traditionally, the owner of a permanent life insurance policy had one choice when he or she wanted to cash in a policy—surrender the policy and receive the cash value.

Beginning about twenty years ago, some third party companies began to offer the owners of policies on terminally ill insureds the ability to viaticate the policy. In such cases, the viatical settlement company would make an offer to the owner to purchase the policy for a substantial percentage of the policy’s death benefit. Read More

Things to Consider

Business owners must often choose the right ownership and payment structure for the business-related life insurance coverage. In selected cases, fairly sophisticated strategies—such as financed premium, pension-owned coverage or 412 (e)(3) plans—can fit a client’s needs.

However, most instances of business-related permanent life coverage involve choosing between three nonqualified life insurance plans:

1. Bonus plan
2. Split dollar plan
3. Key employee insurance plan

What are these, and which one is the best choice? Read More

Sophisticated charitable giving techniques can allow donors to accomplish a number of philanthropic, family and tax objectives. The tools available include:

• Charitable remainder trusts
• Charitable gift annuities
• Testamentary gifts
• Family foundations
• Charitable lead trusts

Read More

For most individuals, social security retirement benefits can play a key role in figuring the right age for retirement, and maximizing income during later years. While social security will not usually be the only source of retirement income, the benefits can be substantial. Read More

With news headlines announcing multi-million dollar jury awards in lawsuits, it’s easy to understand why asset protection strategies might be needed.

Individuals may be interested in asset protection planning to protect against:

• unknown future creditors,
• current creditors,
• potential ex-spouses, and
• the IRS and other taxing authorities. Read More