Keeping Current
As a complimentary service to our clients and friends, we offer a variety of newsletters and publications covering the latest topics of interest to you.
Roth IRAs, despite their attractive features, have yet to match the popularity of traditional IRAs. As of 12/31/08, $3.5 trillion was invested in traditional IRAs compared to $165 billion in Roth IRAs. One main reason why Roths constitute such a small percentage of total retirement assets is that high net worth individuals – who potentially stand to benefit the most from them – have been ineligible to contribute directly to one or convert their existing traditional IRAs to a Roth. Read More »
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:
- 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 »
In this issue we address the most recent developments in federal and California legislation that will affect many businesses as well as individuals. As the recession continues to linger, the Congress renewed and enhanced some of the existing tax benefits enacted earlier this year to lend a hand to individual and corporate taxpayers on their path to recovery. Yet, a House-passed health care reform bill includes many tax crackdowns on individuals and employers. We discuss the most recent law developments in depth below. 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:
- Why do I need to prepare a will or trust at all?
- Do I need a living trust?
- How can I protect my young children?
- How can I protect my special needs relative?
- How do we arrange our affairs to adequately protect all sides of our blended family?
- 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:
- Bonus plan
- Split dollar plan
- Key employee insurance plan
What are these, and which one is the best choice? Read More »
In a downturned economy, operating inefficiencies can push shaky companies over the edge. On the other hand, healthy supply chain management can help avoid inefficiencies. A strong system displays these chief characteristics: Read More »
Internal controls are a system of policies and procedures businesses put in place to protect assets and improve operating efficiency. Internal controls specify how companies direct, monitor and measure their resources. Moreover, they are your borrowers’ first line of defense against fraud. Read More »