Manchester, CT 860.646.2465 • Niantic, CT 860.739.5459 • Storrs, CT 860.429.7885
Office Hours Monday–Friday: 8:30am-5:00pm
CLOSED: CHRISTMAS Tuesday, December 25th and
NEW YEAR'S DAY Tuesday, January 1st
Posts Tagged ‘Required Minimum Distribution’
5 Reasons Taxpayers over Age 70 1/2 Should Make a Charitable Donation From Their IRA
The Tax Cuts and Jobs Act (“TCJA”) almost doubled the Standard Deduction. Beginning in 2018, Single filers can claim $12,000, Head of Household $18,000 and Married Filing Jointly $24,000. Additionally, the maximum amount that can be deducted for state and local income tax is $10,000. Before this change, it was estimated that about 30% of taxpayers itemized their deductions. After this change it is estimated that about only 10% of taxpayers will itemize their deductions.
Individuals over age 70 ½ … Continue reading »
3 Reasons I Encouraged My Son to Open a Roth IRA
I recently suggested to my son that he open a Roth IRA. Here are the 3 reasons why.
1) He’s Young
The Roth IRA offers a huge advantage over a regular IRA. This is particularly so for younger people. With the IRA you are (generally) allowed a tax deduction for this. The IRA grows tax deferred. You can begin to take distributions after age 59 1/2 without penalty. You must begin taking distributions after … Continue reading »
How to Explain a Roth IRA to Your 25 Year Old
Roth IRA Eligibility
To be eligible for a Roth IRA you need to have earned income. This is typically from wages earned as an employee. Earnings from self-employment also qualify. The annual contribution is the lesser of your earned income or $5,000. The contribution can be made at any time during the year and up to April 15th following the year.
6 Proven Reasons to Make a Charitable Donation from Your IRA to Save Money
The American Taxpayer Relief Act of 2012 has temporarily extended the ability of certain taxpayers to make charitable donations from their IRA.
The Basics
Charitably inclined taxpayers over age 70 1/2 can donate up to $100,000 per year from their IRA to a qualified charity. This is known as a Qualified Charitable Distribution. The donation must be made directly from the IRA to the qualified charity.
4 Easy Ways to Start Your 2013 Tax Planning and Save Money
The New Year’s celebrations are over.
The New Year’s Resolutions are starting. We’ll see how long they last.
Many people feel income taxes are going up. I’m confident they are for the higher income earners.
