Tax Services & Strategies

The goal of a solid retirement withdrawal strategy is to enjoy one’s hard-earned funds without running out of money. But what options do you have when deciding what happens to any remaining assets? Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, you’re able to name different types of beneficiaries—individuals who will inherit your accounts. Here’s a look at what’s often seen as the most advantaged type: an eligible designated beneficiary. What Are Eligible Designated Beneficiaries? Simply put, an eligible designated beneficiary (EDB) is a classification for someone who inherits an IRA or other form of retirement Read More

You worked hard to become a homeowner. Now, what happens when it’s time to sell? We break down one of the biggest tax considerations you need to know. What is the capital gains tax? In general terms, a capital gains tax is the tax on the profit you receive when you sell a taxable asset that has increased in value. For example, if you purchased a piece of art for $2,000 and later sold it for $15,000, only the net $13,000 would be taxed. How is the capital gains tax related to real estate? Things get a little more Read More

You’ve probably heard that the Federal Reserve plans to hike interest rates this year for the first time since 2018. Wondering if and when this might affect your finances? Here’s what you need to know. What sort of rate hikes are expected? Federal Reserve Chair Jerome Powell told the Senate Banking Committee on March 2 that he expects the Fed to raise interest rates one quarter of a percentage point. That's a more conservative increase than was originally expected, but the Fed has indicated that more caution is needed in light of the Russian invasion of Ukraine, which has Read More

You’re certainly aware of the importance of diversification when it comes to your portfolio, but have you considered how being diversified from a tax perspective influences your retirement plans? What is tax diversification? This is an approach to investing that involves allocating your assets across investments that have different tax treatments. This isn’t to be confused with asset allocation, of course, which refers to spreading your investment dollars among varying asset classes in order to appropriately balance risk and reward. However, tax diversification does help you balance risk and reward, in that you’re investing to mitigate the risk of Read More

As of late January 2022, the backdoor Roth IRA is still an option. But some experts are saying if you plan to execute a backdoor or mega backdoor Roth, now is the time. You might have heard that part of the Build Back Better bill included closing the ability to contribute to a backdoor Roth IRA, which has been a nice tax-savings maneuver for many high-income individuals and households. While this portion of the bill did not pass in late 2021, there is a possibility that Congress will take another stab at it in 2022. The Backdoor Roth & Read More

If part of your employee compensation comes from restricted stock units (RSUs), then you’ll want to understand the tax implications of this valuable and increasingly popular form of equity compensation. RSU tax treatment isn’t overly complicated (unlike other forms of equity compensation) but there are some key things to be aware of in order to manage your tax burden effectively. There are essentially three potential tax implications with RSUs to understand: Withholding taxes, capital gains tax, and getting pushed into a higher tax bracket. So when will you pay tax on RSUs and how much? It all depends on Read More

Right now is a good time to make sure you’ve done all you can to minimize your tax burden for the year. Tax-loss harvesting is one common strategy to consider. Did your portfolio suffer an investment loss this year? You just might be able to make lemonade out of those lemons with an investment strategy called tax-loss harvesting. What is tax-loss harvesting? Essentially, this strategy involves using a loss to offset your tax liability and shift your portfolio toward an improved position. Here’s how it generally works: You sell (or “harvest”) an underperforming investment at a loss, then use Read More

It’s that special time of year: Q4, when small businesses owners start thinking about year-end tax planning. Get ahead of the game with our 10 tax tips. Tip #1: Make sure your books are in order If you’re managing a small business (meaning, you don’t have an entire dedicated finance department), it’s a challenge to stay on top of the daily to-dos involved with proper bookkeeping and accounting. Right now is an important time to reconcile all your accounts and make sure your finances are in order in preparation for tax time. Tip #2: Know your business’ financial health Read More

The Social Security Cost of Living Adjustment just had the biggest boost in 40 years. Here are all the details. There have been many economic impacts as a result of the pandemic, and here’s another one: the Social Security Administration (SSA) just announced it will increase benefits by 5.9% in 2022. The bump will lift the average benefit by $92 to $1,647, up from an average of $1,556. For couples where both spouses are Social Security beneficiaries, the average will rise $154, from $2,599 to $2,753. Why the COLA Increase? The increase is in response to rising consumer prices for Read More

The lifetime gift tax exemption applies to all the taxable gifts an individual makes during life, and it also applies to assets left upon that individual’s death. In 2021, that lifetime exemption is $11.78 million for individuals. Here, we answer common questions about gift taxes. What qualifies as a “gift” as far as the IRS goes? A gift is any money or asset that you don’t expect to receive fair payment for. This could be cash, real estate, investments, interest-free loans, and tangible or intangible assets. There are some exemptions, or things that don’t qualify as gifts for the Read More