2018 is the first year you need to do year-end Section 199A tax planning. And if you fail to plan, there are consequences. Big consequences. For starters, you could miss out on the huge 20-percent deduction you may be entitled to. Ouch! But don’t worry. It’s not too late to bring your Section 199A deduction back to life. The first thing you need to do is take a minute … [Read more...]
Retirement
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Five strategies for dealing with a business loss
Tax reform provided some real benefits for small-business owners. But the changes lawmakers made to the net operating loss (NOL) deduction rules can take a lot of money from your pocket. You see, before tax reform you could carry back the NOL to prior tax years and get refunds of taxes paid in those years. Or, you could have elected to wave the NOL carryback and, instead, … [Read more...]
Three ways to take money from your IRA, penalty free
If you’re like most taxpayers, you probably believe this statement… “IRA accounts lock up your money until age 59 ½, unless you’re willing to pay a 10-percent penalty to access your money.” Not true. This is a myth. The fact is, there are three ways you can take money from either a traditional IRA or Roth IRA. And yes. You can do this tax-free and penalty-free, for any … [Read more...]
How to avoid retirement plan and IRA rollover traps
Thinking about rolling over a qualified retirement plan into an IRA? Go right ahead. It’s usually a smart move because a rollover lets you keep deferring taxes on the rolled-over amount. But be careful. If you don’t follow the IRS’s rules, you could wind up in an IRS agent’s office. Want to learn how to handle retirement plan and IRA rollovers the right way? Read my … [Read more...]
Tax reform attacks IRA “recharacterization”
Thinking about moving your retirement money to a Roth IRA? Be careful before you do! You see, when you convert a traditional IRA to a Roth IRA, and then reverse the transaction (by switching the account back to traditional IRA status), the reversal is characterized by the IRS as a “recharacterization.” If you have a sizable accumulation in your traditional IRA, the … [Read more...]