A Closer Look at Net Investment Income Tax (NIIT)
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The 3.8% Net Investment Income Tax (NIIT) is a Medicare contribution tax on investment income.

The Complete Guide to IRA Contributions and Withdrawals
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Individual retirement accounts (IRAs) are one of the most important account types, and understanding the difference between Roth and traditional contributions and withdrawals is foundational to tax planning.

IRS Guidance on Pension-Linked Emergency Savings Account (PLESA)
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What procedure can you put in place to prevent employer match churning? That is still unclear.

Tax Changes in 2026 (Radio)
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After over a decade of broken promises and rising costs, our need for a more sustainable tax system is acutely felt.

How to Correct Excess Backdoor Roth Contributions
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While an excess or failed backdoor Roth can feel very stressful to solve, it is a normal and quick fix for your qualified financial custodian.

Tax Savings Opportunity for Charlottesville City Seniors This February
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Seniors over age 65 may receive relief on their real estate taxes limited by AGI but regardless of net worth.

New IRS Notice Moves SECURE 2.0 Act Implementation Closer
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The IRS authors make clear that the purpose of the notice is to “provide guidance on discreet issues to assist in commencing implementation of these provisions” not to provide comprehensive guidance.

Pension-Linked Emergency Savings Account (ESA) Available in 2024 (Secure 2.0)
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While the initial details sound promising, the downsides are many.

How to Uncap Your 529 Plan Virginia State Tax Deduction
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You can have an effectively uncapped state tax deduction if you have a high tolerance for paperwork.

States with Death Taxes (2023)
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While most states do not have their own estate or inheritance taxes, some states do and often their exemption is lower than the federal one.

529-to-Roth Rollover Contribution Available in 2024 (Secure 2.0)
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This new rule says that the account owner can distribute funds from a 529 plan directly to the designated beneficiary’s Roth IRA and have the rollover “be treated in the same manner as the earnings and contributions of a Roth IRA” (meaning no taxation).

QCD Limitation Starts Inflation-Adjusting in 2024 (Secure 2.0)
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Congress decided to inflation-adjust both the existing and the new split-entity qualified charitable distribution limitations.

What Counts As Income For Roth IRA Funding Purposes?
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Roth IRAs can only be funded with earned income. Here is a guide to what the IRS considers to be earned income.

What Interferes With a Backdoor Roth?
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Here are three common Roth transactions and how they interact with MAGI for Roth IRA purposes.

Inherited RMD Update: IRS Waives 2023 Penalties and Delays to 2024
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This notice did not offer the final guidance we were hoping for, but rather continued to push the decision further down the road.

No Tax Benefit to Gifting Capital Losses
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Gifting depreciated stock is more complex and never to anyone’s advantage.

Virginia Real Estate Tax Relief For the Elderly and Disabled By City and County
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Each governing body in Virginia has their own rules and eligibility requirements.

New Proposals Offer Insight into Republican’s Tax Agenda
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We’ll have to wait and see what they really mean by these lofty goals.

Access $1,500 Per Child for K-12 Students in Virginia
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These grants are called “K-12 Learning Acceleration Grants” and must be used to pay for “qualifying education services.”

2026 Tax Cliff on Horizon
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Why create tax rules which expire so soon after they are made? The answers are as frustrating as the uncertainty the sunsets create.

More People Eligible for ABLE Accounts in 2026 (Secure 2.0)
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This amendment raises the ABLE account age to 46 starting in 2026.

New Catch-Up Limits for Ages 60-63 in 2025 (Secure 2.0)
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Seniors born between 1962 and 1965 will be the first to be able to take advantage of these plus-sized limits.

Retirement Plans Allow Roth Employer Contributions Now (Secure 2.0)
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For those who run a retirement plan, the next step for implementing this change is to email your plan provider.

High Wages Limit Catch-Up Options to Only Roth in 2024 (Secure 2.0)
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Hopefully over all this amendment encourages employer plans to offer Roth options, which will be good for taxpayers, even if this additional wealthy discrimination is unwelcome.

Contribution Basis is Prorated for Roth 401(k) Withdrawals But Not Roth IRA
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In a designated Roth account like a Roth 401(k), each early distribution is treated as coming part from contribution basis and part from earnings.

No More Roth 401(k) RMDs in 2024 (Secure 2.0)
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This update amends the Roth-side of employer retirement plans to behave more like Roth IRAs prior to death.

Changes to RMDs for Those Born in 1951 or Later (Secure 2.0)
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Later required beginning dates are generally advantageous to seniors, although the complexity surrounding RMD rules is nothing to celebrate.

At 65, Does the 5-Year Roth Rule Matter?
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For those over age 59 1/2, you would need to withdraw all funds attributable to basis before your withdrawal would be sourced from Roth IRA earnings and the age of your Roth IRA would matter for taxation.

How to Avoid an IRMAA Medicare Premium Surcharge 2023
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To avoid getting issued an IRMAA, you can proactively tell the SSA of any changes your income has seen in the past two years using a “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event” form.

Easily Calculate the Fair Market Value (FMV) of a Security in Excel
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With the help of Yahoo Finance and a one-cell formula, you barely need to do any work.

Q&A: Wash Sale: VFIAX and VOO?
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The IRS has very limited case law on what constitutes a substantially different fund. However, here is what we do in our own trading.

How the Wealthy Can Take Advantage of Health Insurance Subsidies for 2023 Onward
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You may be surprised by the amount of subsidies you can receive.

The IRS Waives 2021 & 2022 Penalties Because Its Unclear How the New Inherited IRA 10-Year Rule Works
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In 2019, the SECURE Act changed how inherited RMD rules work. After many IRS notices, we now aren’t sure how the new rules work.

How to Calculate Fair Market Value if the Date of Death Is on a Weekend?
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Calculating the fair market value of property varies in difficulty depending on the type of property and the date of death.

Q&A: Do I Need a Contract to Employ My Child?
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Employment contracts have their origins in very old master-servant laws. With no employment contract, you can better protect your child’s freedom and childhood.

Q&A: Can I Hire My Child If I Have a Solo-401(k)?
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You can find out if your child or other employee qualifies by reviewing your 401(k) plan document.

What To Do With Missing Cost Basis
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If you have cost basis information missing in a taxable account, it is important to work with your custodian on correcting the missing information.

How the Kiddie Tax is Calculated
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Some investable assets in the name of the child can currently keep $2,300 of unearned income from the tax rate of the parents.

States with Tax-Exempt Interest from U.S. Debt Obligations
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As always, it is best to confer with a tax professional on matters such as these.

How to Change a 529 Plan Account Owner
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While you may think that the account owner needs to stay the same, you can easily change the account owner.

How to Calculate Taxable Social Security (Form 1040, Line 6b)
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If you receive Social Security benefits, the portion of those benefits which will be taxable depends on your income. The taxable portion can be anywhere from 0% to a maximum of 85% of your benefits.

Do Large Roth Conversions Require Backdoor Roth Contributions? (2021)
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Luckily for Roth lovers like us, you don’t have to choose between Roth conversions or Roth contributions.

Is a SEP-IRA or Solo-401(k) Better?
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A SEP-IRA can be opened any time before you file your tax return and you can make prior-year contributions at that time. In contrast, a solo-401(k) must be opened and contributed to before the year end to count for that tax year.

Am I Limited to Only One Roth Conversion Per Year?
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Most people are able to do direct rollovers from a traditional IRA to a Roth IRA. In this way, most people can do any number of Roth conversions in one twelve-month period.

How to Avoid an IRMAA Medicare Premium Surcharge 2022
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To avoid getting issued an IRMAA, you can proactively tell the SSA of any changes your income has seen in the past two years using a “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event” form.

Can Taxable Life Insurance Benefits Contribute to an IRA?
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If you have this fringe employer or former employer benefit, I hope you are able to take advantage of making small Roth IRA contributions throughout your retirement.

How the Wealthy Can Take Advantage of Health Insurance Subsidies in 2022
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If you are currently shopping for health insurance for 2022, consider getting an on-exchange health insurance plan. You may be surprised at how much subsidies you can receive.

How Your Tax Is Calculated: Qualified Dividends and Capital Gains Worksheet
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The 25 lines of the Qualified Dividends and Capital Gain Tax Worksheet are so simplified, they end up being difficult to follow what exactly they do. So, for those of you who are curious, here’s what they do.

Individual 401(k) Elective Deferral Limits and Deadlines
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You as the business owner have until the tax-filing deadline to complete both your profit-sharing and elective deferral contributions.

How Your Tax Is Calculated: Tax Table and Tax Computation Worksheet
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Whether you are on the Tax Computation Worksheet or in the Tax Table it helps to understand how your tax is calculated.

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