Q&A: Can I Make a Prior-Year Roth Conversion This Year?
with No Comments

Alas, the year you move the funds from traditional IRA to Roth IRA is the year that those assets are taxed.

Q&A: Are There Any Restrictions on How Much or Who Can Convert to Roth?
with No Comments

Taxpayers of any income level, age, and employment or retirement status can convert their pre-tax individual retirement assets to Roth IRA.

The 2020 Joint Charitable Standard Deduction: $300 or $600?
with No Comments

The draft 2020 Form 1040 instructions clarify: the $300 limit is per form.

The Full Complexity of All Required Minimum Distribution Divisors Explained (2020 Update)
with No Comments

The SECURE Act of 2019 changed several things, so here is an updated review of this complex subject.

Can a College Drop-Out Reimburse for Expenses Out of a 529 Plan?
with No Comments

Hopefully this simple guide helps you get started in the right direction for correcting these surprise excess distributions.

Q&A: Can a 529 Reimburse for Last Year’s Expenses?
with No Comments

Unfortunately, neither “yes” nor “no” is a correct answer to this question.

Before the Estate Tax Exclusion Sunsets in 2026
with No Comments

Individuals with more than $5M may be served well from gifting to utilize the higher estate exclusions before they sunset.

How to Transfer 529 Funds From One Family Member To Another
with No Comments

You can transfer up or across the family tree. However, if you want to transfer down a family tree, you can run into taxation problems.

How to Change Your IRA Beneficiary Designations After the SECURE Act
with No Comments

Now non-nuclear family or friends who are more than 10 years younger than the decedent and in good health are never eligible for stretch provisions and must distribute the whole balance over 10 years.

Can I Deduct a 529 Contribution to an Account I Don’t Own?
with No Comments

Unfortunately, the answer is that you cannot. The 529 account owner receives any state tax deductions for contributions make to their account.

How to Claim Your Virginia State Tax 529 Contribution Deduction
with No Comments

Form ADJ of the 760 lines 8a – 8c are where you report miscellaneous deductions.

Virginia 529: What Counts as a Unique Account for Per-Account Deductions?
with No Comments

Oddly enough, what qualifies something as a unique account is both a unique account registration and investment portfolio selection.

Before August 31: Another Chance to Redistribute Your 2020 RMD
with No Comments

This latest notice now gives both seniors and heirs who have not yet been able to put their formerly RMD funds back into their IRAs the chance of redistributing those funds to the IRA that distributed them.

How to Transfer Your Economic Impact Payment Card Into Your Bank Account
with No Comments

It took me one hour to complete from start to finish. Hopefully, now that I have bumbled my way through it on my own and documented the steps, it takes you less time.

Do Children Need To File A Tax Return To Fund Their Roth IRA? (2020)
with No Comments

Don’t let stress about tax filing requirements keep you or your child from a powerful opportunity to provide for their future.

Yet Another Chance to Redistribute Your 2020 RMD
with No Comments

Hopefully, this extension helps some take advantage of this welcome relief.

Q&A: Can You Fund a Roth IRA After Filing Your Taxes?
with No Comments

You always have until the tax filing deadline to make your IRA contributions regardless of when you file.

Q&A: Can I Undo My Roth Conversion? (2020)
with No Comments

Unfortunately, as part of the Tax Cuts and Jobs Act back in December 2017, Congress eliminated the ability to undo Roth conversions, so there isn’t a way to undo a conversion.

How to Use a Coronavirus-Related Distribution to Reverse Your RMD (2020)
with No Comments

In this way, those with inherited IRA distributions they would like to reverse or those with distributions no longer eligible for regular 60-day rollover contributions may be able to still complete either a Roth conversion or IRA redistribution with those assets.

This 2020, The IRA Contribution Deadline Isn’t Until July
with No Comments

Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.

How to Calculate Your Roth Contribution Phase-Out and What To Do With It
with No Comments

What can you do when you are in the middle of the Roth IRA contribution phaseout range?

The RMD Waiver in the CARE Act of 2020 is a Repeat of 2009 Legislation
with No Comments

Hopefully, this bit of tax history gives seniors and heirs a bit of comfort in taking advantage of this welcome relief.

Q&A: Do I Need to File Schedule H for My Child’s Wages?
with No Comments

I do not need to file Schedule H and imagine that most parent household employers also do not need to file this schedule.

CARES Act Creates a $300 Charitable Contribution Deduction for the Standard Deduction
with No Comments

Congress enabled those who are taking the standard deduction to deduct $300 of charitable giving if they do not itemize.

If You Act Fast, You Can Undo Your 2020 RMD Thanks to the CARES Act
with No Comments

Among the temporary measures, Congress waived required minimum distribution (RMD) requirements for only tax year 2020.

Funding a 3-Year-Old’s Roth IRA
with No Comments

My daughter was employed at her first job, earned her first income, and was able to fund her Roth IRA for the first time.

Q&A: Do I Need to Pay Tax on This 1099-R?
with No Comments

The given numbers on a 1099-R are insufficient to be able to fill out your tax return correctly. Knowledge of what was actually done is required in order to file your taxes accurately.

Q&A: Who Pays Taxes and Penalties on 529 Distributions and How?
with No Comments

Who will be responsible to pay for the taxes related to the distribution? Where do you report the taxable portion on your tax return?

How to Fund Your Roth with Babysitting Money
with No Comments

For domestic tasks like babysitting there are often two options: independent contractor or household employee. Taking the time to educate yourself on the difference may be worth your while.

Q&A: Can I Do a Backdoor Roth and a Reverse Rollover to a 401(k) In the Same Year?
with No Comments

This person has an IRA balance, but is about to empty it with a reverse Rollover. So the question is one of timing: can they do the IRA Rollover before the nondeductible contribution so that their cream and coffee never mix?

Q&A: Should I Donate QCDs When I Have a Nondeductible Basis?
with No Comments

Luckily for the charitably-inclined individuals with nondeductible balances, QCDs are excluded from your Form 8606 taxable and nontaxable calculations.

The SECURE Act of 2019 Becomes Law
with No Comments

The SECURE Act was merged into the 2020 budget bill which is now law.

Keeping Your Roth 401(k) Balance Separate During an IRA Rollover
with No Comments

Having a 401(k) plan with both pre- and post-tax balances is quite common, but mistakes are common as well.

Q&A: Can I Reimburse More Than My Actual Room and Board Expenses From My 529 Plan?
with No Comments

Every school sets a budget or allowance for room and board, referred to as the cost of attendance. Are you allowed to reimburse yourself for the entire amount of Room and Board even if you did not spend that much?

Q&A: How Do I Use a 529 to Reimburse for Housing at a School Abroad?
with No Comments

The first step to answering this question is to check that the school you want to attend is an eligible educational institution.

What is Cost Basis and How Do I Calculate It?
with No Comments

The process of correcting cost basis problems, although time consuming, is worthwhile.

Q&A: Can I Still Use a QCD to Get State Tax Credits?
with No Comments

If a portion of your charitable gift is nondeductible, then no portion of the gift can be counted as a Qualified Charitable Distribution. But there is one accepted loophole for QCDs.

State Tax Credits: Navigating the New IRS Rules to Find Tax Savings
with No Comments

This June, the IRS came out with their final ruling on how charitable gifts to receive state tax credits will be handled. This is how the strategy works now.

The Complete Guide to Retirement Account Types
with No Comments

Here is a simple list of the retirement account types and their differences.

Q&A: How Does the SECURE Act Change QCDs?
with No Comments

“I will be turning 70 1/2 and wanted to start making contributions to charity from an IRA and taking the QCD at that time. Would this bill require me to wait two more tax years, until I am 72, to do this?”

IRA Reform on Horizon – SECURE Act of 2019
with No Comments

On May 23, 2019, the House passed the Setting Every Community Up for Retirement Enhancement Act of 2019 with a vote of 417 Yeas and 3 Nays. It is on its way to the Senate.

The Complete Guide to Homeschooling Laws in Virginia
with No Comments

I must say that homeschooling was by far my best education experience.

How QCDs May Help Your Virginia State Taxes
with No Comments

“If you claimed the standard deduction on your federal income tax return, you must also claim the standard deduction on your Virginia return.”

No One Tells the IRS You Did a QCD Except You
with No Comments

Be sure to remember to tell your tax preparer that you did a QCD.

Fund Your Child’s Roth with Chore Income
with No Comments

There are many opportunities to pay your children. If that payment can be counted as earned income, then the child is eligible to fund their Roth IRA.

Q&A: Can I Do Backdoor Roth and an IRA Rollover In the Same Year?
with No Comments

This person has no IRA balance, but is about to get one with an IRA Rollover. So the question is one of timing: can they do the IRA Rollover after the nondeductible contribution has already been converted so that their cream and coffee never mix?

Q&A: Can I Turn My Real Estate Income Into a REIT to Get the QBI Deduction?
with No Comments

You are allowed to deduct “up to 20 percent of their combined qualified real estate investment trust (REIT) dividends,” and this deduction is unlimited. So it begs the question: Is there a way I can deduct my normal real estate income?

Loophole: How to Perform Qualified Charitable Distributions Out of Ongoing SEP-IRA Assets
with No Comments

It turns out there is still a way to do a QCD out of those assets, but it requires a bit of planning ahead.

Understanding The Estate Exemption
with No Comments

To preserve the portability of a deceased spouse’s exemption, you must file an estate tax return after the death of the first spouse even if you otherwise did not have to do so. The due date of the estate tax return is nine months after the decedent’s date of death.

1 2 3 4 5

Like what you read? Subscribe to our newsletter!