Estate Planning

IRS Announces Retirement Plan Contribution Limits for 2022 by Tomoko Shoji, CPA/PFS, CFP

Posted on December 08, 2021 by Tomoko Shoji

The IRS recently released its cost-of-living adjustments for retirement savers in 2022, increasing the annual contribution limits for those with 401(k), 403(b), most 457 plans and SIMPLE IRAs, while also raising the income range for individuals to qualify for deductible contributions to traditional IRAs. Employer-Sponsored Plans The maximum salary deferral for 2022 contributions to employer-sponsored […]

Tax Reform Spurs Immediate Need for Business Valuations by Daniel S. Hughes, CPA/CFF, CGMA, CVA

Posted on October 14, 2021 by Daniel Hughes

Business owners already struggling with the continued uncertainty surrounding the pandemic are also facing the prospect of higher taxes and a resulting negative impact on company cash flow, profitability and valuations. For some, this environment will accelerate business sales or mergers and require significant alterations to existing estate plans – all of which will require […]

Will Grantor Trusts Become Extinct? by Jeffrey M. Mutnik, CPA/PFS

Posted on October 14, 2021

If and when Congress passes a law reforming the tax code, there is a general expectation that taxes will increase, and some commonly used estate planning strategies will be added to the endangered species list. Among the tools being targeted are irrevocable grantor trusts, which have long enabled grantors to remove appreciating assets from their […]

What’s In the Latest Draft of Proposed Tax Law Changes? by Jeffrey M. Mutnik, CPA/PFS

Posted on October 04, 2021

On September 25, the House Budget Committee voted to approve the latest round of recommended changes to the U.S. tax code as part of the president’s $3.5 trillion Build Back Better Act. The draft legislation calls for higher taxes, but at rates that are not as high as previously proposed. In addition, it fails to […]

Properly Titling Trustees’ Signatures Can Protect Their Assets by Jeffrey M. Mutnik, CPA/PFS

Posted on September 24, 2021

When individuals sign legal documents, including personal checks, contracts, tax returns, etc., they generally are not required to add any language explaining who they are. Their names alone satisfy the legal requirements for validating those documents. However, when those people are also officers of corporations or managers of partnerships or LLCs, they usually include their […]

An Alternative Tax-Deferral Strategy for Passive Commercial Real Estate Investors

Posted on September 14, 2021

Tax-Deferral Strategies for Commercial Real Estate Investors Commercial real property investors have long relied on Section 1031 of the Internal Revenue Code to defer capital gains tax on the sale of appreciated property when they reinvest sales proceeds into similar like-kind property. However, with the Biden administration’s proposal to restrict the tax-deferral benefits of 1031 […]

Mega Backdoor Roths Can Help 401(k) Participants Supersize Retirement Savings by Jeffrey M. Mutnik, CPA/PFS

Posted on August 13, 2021

Employer-sponsored 401(k) plans are excellent vehicles for individuals to save for retirement during their prime earning years. Annual contributions made today with pretax dollars grow tax-deferred until you reach retirement age, when the distributions you take are treated as taxable ordinary income. However, even if you are diligent and contribute the maximum allowable amount to […]

How Does the SECURE Act Affect Your Retirement Savings Plan? by Adam Cohen, CPA

Posted on May 11, 2021 by Adam Cohen

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law at the end of 2019 to help more Americans prepare and plan for greater financial security during their retirement years. As the average life span increases, people need more money to maintain their standards of living in retirement. However, not […]

Wealthy Taxpayers, Corporations Should Heed Warnings Implied by IRS Budget Increase by Jeffrey M. Mutnik, CPA/PFS

Posted on April 21, 2021

Included in the Biden Administration’s proposed budget for fiscal 2022 is an additional $1.2 billion in funding to help the IRS ramp up its tax enforcement efforts after more than a decade of spending and staffing cuts. What this means for taxpayers is a likely increase in IRS audits and heightened scrutiny of tax compliance, […]

Trusts Still Have Time to Reduce Taxable Income in 2020 by Jeffrey M. Mutnik, CPA/PFS

Posted on February 25, 2021

Rarely do taxpayers have an opportunity to reduce their taxable income and related tax liabilities in a given year after the clock strikes midnight on December 31. This is not the case for certain trusts, which the IRS grants an additional 65 days after year-end to distribute income to beneficiaries and treat it as if […]

Category: Estate Planning