With the new 10-Year Rule in effect, passing along a Traditional IRA could create a major tax burden for your beneficiaries. One strategy gaining traction among high-net-worth families and retirees is the “Next Gen Roth Conversion Strategy.” By paying tax now at lower rates, you may be able to pass on a fully tax-free Roth IRA—one that continues growing tax-free for years after the original account owner has passed away.
Helping a family member pay for education? Make sure you're on the right side of the IRS.
Whether you're covering K–12 tuition, writing checks for college, or assisting with student loans after graduation, the tax treatment of those payments isn’t always intuitive. The IRS draws a clear line between direct tuition payments and student loan contributions—and crossing that line could mean triggering gift tax rules you didn’t anticipate.
If you’re retiring or leaving your job and have company stock in your 401(k), understanding NUA (Net Unrealized Appreciation) could save you thousands in taxes. Many miss this valuable opportunity by rolling everything into an IRA without considering the tax implications. Our latest article breaks down how NUA works, common tax mistakes, and when choosing NUA makes sense. Learn how factors like your age, retirement timeline, and stock performance play a role. Don’t overlook this strategy if your company stock has grown significantly in value—it could make a big difference in your retirement savings.
Many retirees are caught off guard by unexpected tax hits from required minimum distributions (RMDs), Social Security, and even Medicare premiums. In this article, we break down the most common retirement tax traps — and how smart planning can help you avoid them.
The stock market selloff continues amid the escalation of the trade wars between the US and 180 other countries. It’s left investors asking the questions:
Where is the bottom?
Are we headed for a recession?
Unfortunately, the answers are largely rooted in the decisions that President Trump makes in the coming days and weeks. There have been talks about the Fed decreasing rate, tax reform getting passed sooner, negotiations beginning with 50 of the 180 countries that we placed tariff on, but in this article we are going to explain why all of these solutions may be too little too late when it comes to the overall negative impact that tariff are currently having on the US economy.
Yesterday, April 2, 2025, President Trump announced new tariffs, referred to as “reciprocal tariffs,” against more than 180 countries simultaneously. Both the magnitude of the tariffs and the number of countries against which they will be levied far exceeded market expectations. This raises new concerns for investors regarding how these new tariff policies will impact the US economy, both in the short term and long term.
While policy can be debated regarding whether or not the new tariffs will bring positive long-term change to the US economy, we believe that additional risk may lie in the method by which the new policy is being implemented. As we have seen in business many times, the right strategy, executed the wrong way, can lead to unexpected negative outcomes.
March was a tough month for the stock market, with the S&P 500 Index dropping by over 5% for the month. With the new “Liberation Day” tariffs going into effect on April 2nd, many investors are asking if the new tariffs and the recent stock market correction warrant a change in investment strategy. Will the selloff continue, or are we in store for a market rally in April?
In this article, we will share our market analysis, highlight key economic data points to watch as the new tariffs are rolled out, and answer the question: Do recent events warrant a change in investment strategy?
Deciding to take Social Security benefits early can be a practical choice for many retirees, but it comes with potential challenges. One major consideration is the earned income penalty, which could reduce your benefits if you’re still earning income over a certain threshold. But there is a flaw in the Social Security system that sometimes incorrectly assesses the earned income penalty. When someone retires, oftentimes their income for the year is already above the $23,400 earned income threshold but very few retirees realize that if their social security benefit is not turned on until after they receive their final paycheck, the earned income penalty will not apply even though social security may attempt to assess the penalty anyways.
The good news? With proper planning and documentation, such as holding onto your final paystub, you can avoid unnecessary penalties and protect your benefits.
Safeguarding a Roth IRA from the Medicaid spenddown process has long been a challenge for individuals preparing for long-term care. Unlike other assets, Roth IRAs cannot be owned by trusts, and their lack of required minimum distributions (RMDs) has historically left them vulnerable under Medicaid rules. However, a groundbreaking strategy recently developed in New York provides new hope for preserving the full value of these important retirement accounts. By voluntarily initiating RMDs on Roth IRAs, individuals can now protect these accounts from being depleted entirely during Medicaid qualification.
Topics Covered in This Article:
Challenges of Protecting Roth IRAs
The Role of Irrevocable Trusts
Understanding the Medicaid Spenddown Process
Voluntary RMDs for Roth IRAs
New York’s Innovative Strategy
Irrevocable trusts are powerful tools for long-term care planning and asset protection, but what happens when you need to access those locked-away assets?
Our latest article, Can You Break an Irrevocable Trust?, dives deep into the options available if you find yourself in this situation. Learn about key topics like:
The strict limitations on accessing the trust principal
The grantor's rights to trust income
Pros and cons of adding a gifting provision to your trust
Revoking a trust – Full or partial
Changing the trust investment objective to generate more income for the grantor
Tax trap of realized gains within grantor irrevocable trusts
Whether you’re planning your estate, serving as a trustee, or navigating Medicaid rules, this comprehensive guide is packed with expert insights you shouldn’t miss.
IRS Issues Guidance on Mandatory 401(k) Roth Catch-up Starting in 2026
Starting January 1, 2026, high-income earners will face a significant shift in retirement savings rules due to the new Mandatory Roth Catch-Up Contribution requirement. If you earn more than $145,000 annually (indexed for inflation), your catch-up contributions to 401(k), 403(b), or 457 plans will now go directly to Roth, rather than pre-tax.
The IRS just released guidance in January 2025 regarding how the new mandatory Roth catch-up provisions will work for high-income earners. This article dives into everything you need to know!
Have you or someone you know recently inherited an IRA in New York? There’s a tax-saving opportunity that many beneficiaries overlook, and we’re here to help you take full advantage of it.
Did you know that if the decedent was 59 ½ or older, you might qualify for a $20,000 New York State income tax exemption on distributions from the inherited IRA—even if you’re under age 59 ½? This little-known benefit could save you a significant amount on taxes, but navigating the rules can be tricky.
Topics covered:
🔹 The $20,000 annual NY State tax exemption for inherited IRAs
🔹 Rules for New York beneficiaries under age 59 ½
🔹 How this exemption can impact the 10-Year Rule distribution strategy
🔹 How tax exemptions are split between multiple beneficiaries
🔹 What if one of the beneficiaries is located outside of NY?
President Trump just announced tariffs against Canada, Mexico, and China that will go into effect this week, which has sent the stock market sharply lower. I have received multiple emails from clients over the past 24 hours, all asking the same question:
“With the Trump tariffs that were just announced, should we be going to cash?”
Prior to 2025, it was very easy to explain to an employee what the maximum Simple IRA contribution was for that tax year. Starting in 2025, it will be anything but “Simple”. Thanks to the graduation implementation of the Secure Act 2.0, there are 4 different limits for Simple IRA employee deferrals that both employees and companies will need to be aware of.
When the Secure Act passed in 2019, a new option was opened up for excess balances left over in 529 accounts called a “Qualified Loan Repayment” option. This new 529 distribution option allows the owner of a 529 to distribute money from a 529 account to repay student loans for the beneficiary of the 529 account AND the beneficiary’s siblings. However, this distribution option is not available to everyone, and there are rules and limits associated with these new types of distributions.
When parents gift money to their kids, instead of having the money sit in a savings account, often parents will set up UTMA accounts at an investment firm to generate investment returns in the account that can be used by the child at a future date. Depending on the amount of the investment income, the child may be required to file a tax return.
Do you have enough to retire? Believe it or not, as financial planners, we can often answer that question in LESS THAN 60 SECONDS just by asking a handful of questions. In this video, I’m going to walk you through the 60-second calculation.
Good news for 401(k) and 403(b) plan participants turning age 60 – 63 starting in 2025: there is now an enhanced employee catch-up contribution thanks to Secure Act 2.0 that passed back in 2022. For 2025, the employee contributions limits are as follows: Employee Deferral Limit $23,500, Age 50+ Catch-up Limit $7,500, and the New Age 60 – 63 Catch-up: $3,750.
There are many reasons why individuals decide to surrender their annuities. Unfortunately, one of the most common reasons that we see is when individuals realize that they were sold the annuity by a broker and that annuity investment was either not in their best interest or they discover that there are other investment solutions that will better meet the investment objectives. This situation can often lead to individuals making the tough decision to cut their losses and surrender the annuity. But before surrendering their annuity, it’s important for investors to understand the questions to ask the annuity company about the surrender fees and potential tax liability before making e the final decision to end their annuity contract.
When a business owner sells their business and is looking for a large tax deduction and has charitable intent, a common solution is setting up a private foundation to capture a large tax deduction. In this video, we will cover how foundations work, what is the minimum funding amount, the tax benefits, how the foundation is funded, and more…….
