Here's the latest question to the Tax Corner: Can I still deduct an IRA when contributing to a 401k plan? Does any participation in an employer sponsored plan make one ineligible to participate in a self-directed IRA? Question: I have two part-time jobs. 95% of my wages are generated at job #1 where no 401K plan is offered. I work infrequently at part-time job #2 where a 401K plan is offered and ... Read More
Taxes
Must I Pay Social Security Taxes on Earnings After Full Retirement Age?
Taxes are always a hot topic and especially for those in retirement. If you're working in retirement, you may have found yourself asking this question as well: Must I pay Social Security taxes on earnings after I reach Full Retirement Age? There are two parts to this question as I understand it: Social Security withholdings on earned income and taxation of Social Security benefits. Social ... Read More
Taxes on Home Sales?
From time to time, I get asked tax questions. A common question is: are there taxes on home sales? The best time to ask this question is not after you've sold your real estate but if you've already passed the keys onto someone else here's what you need to know. So you sold the place you called home. Now what? The usual questions are: Do I have to pay taxes on sales? If I have a gain on the ... Read More
8 Ways to Minimize Taxes
It's tax time again. While taxes are the price for a civilized society, there's nothing in the law that says you can't lower your own tax bill. So at this time of year, I do get questions about taxes. Most folks are looking for ways to minimize taxes. Here are 8 ways to minimize taxes. You may find one or two that work for you. You can minimize tax liability in more ways than can be counted ... Read More
Tax Strategies for Retirees
Ah, retirement! No more worries, right? But when your paycheck stops, you now have to figure out not only how to turn your nest egg into a 'pay check' but how to handle income taxes, too. Here are some tax strategies for retirees to consider. While income taxes can be complex, you may be able to lower your tax burden with good planning and some professional help. Nothing in life is certain ... Read More
Unlock the Power of Your Self-Directed IRA
If you want to be prepared for your retirement, then take charge of your financial future. Unlock the power of your self-directed IRA. Are you tired of making investments that someone else thinks are good for you? Would you like to make investments that you know something about and have direct control over? Consider the power of diversifying your retirement investments through a ... Read More
Lower Your Income Tax Bill When You Sell
While many are still recovering from another tax season, you may benefit by looking ahead to do tax planning to lower your income tax bill when you sell a business or property. Whether you are an owner of a privately-held business or investment real estate, you may be looking to sell your ownership interest someday. But unlocking the value and turning it into cash can also result in a large tax ... Read More
Avoid Common Tax Filing Mistakes
Common 1040 Mistakes to Avoid You may be in a rush to get your tax returns filed but take some extra time to avoid common tax filing mistakes that I see all the time. These slip-ups often creep into federal and state tax returns. No one wants to delay their federal tax refund. But mistakes happen. So it never hurts to check twice to make sure that you've filled out your 1040 form ... Read More
Paying Taxes on Inherited Money
I recently received a question from someone asking about paying taxes on inherited money. This is not an uncommon question for our Ask the Advisor program. When someone passes away, talking about money may seem insensitive but unless you understand the financial and tax impact on inherited money, you may find yourself mourning more than the passing of your loved ones. In this case a woman ... Read More
Inherited IRA Rules: Tips to Avoid These Mistakes
If you thought high school physics and calculus were tough, consider the rules for inherited Individual Retirement Accounts (IRA). Deciphering the rules for beneficiaries can be tough and mistakes may be costly in the form of higher taxes and possibly lower investment returns. What do you need to know to avoid common mistakes? Read on. First, let's clear up what we're talking about. An ... Read More
