Rolling over a company retirement plan distribution into an IRA is usually a good idea. It allows you to defer taxes on the rolled-over balance, and the future income earned on that balance, for as long as the money stays in the IRA. However, the IRA rollover strategy is not always a no-brainer, as one [...]
For 2012, the gift and estate tax exemption is $5.12 million and the maximum gift and estate tax rate is 35%. Absent additional legislation, for 2013 the exemption will drop to $1 million and the top tax rate will increase to 55%. It’s difficult to predict what Congress will do between now and then, so [...]
I recently wrote about the strict tax rules around charitable contributions. See Charitable Contributions and Tax Deductions. Below is a synopsis of the most frequently encountered charitable donation rules: Cash Contributions. No matter how small the amount, you need: A canceled check, credit card statement, or other banking record; or A receipt or other written [...]
When it comes to the tax code, some documentation requirements are flexible, while others are dictated by law and there's no exception. A recent Tax Court case illustrates the importance of following the strict charitable contribution rules. Facts of the Case. David and Veronda Durden filed a joint return for 2007 claiming a deduction of [...]
One word that can make taxpayers cringe is “audit.” Fortunately, chances are slim that you’ll experience an audit: In 2011, the IRS audited just over 1.5% of returns. However, certain triggers can boost the likelihood that your return is among those targeted. How do you get chosen for an IRS audit? There are several red [...]
Managing Seasonal Product Inventory Distributorships in the business of handling seasonal merchandise know that correctly managing supply and demand can be the difference between being left with an empty warehouse (ideal) or the burden of leftover inventory (the result of poor planning) after peak season. Accurately forecasting the demand for seasonal merchandise isn’t easy, because [...]
The Department of Labor (DOL) has provided a strong set of new regulations governing the disclosure of 401(k) plan fees and associated costs. These requirements help plan fiduciaries, plan participants, and beneficiaries to better manage participant-directed individual account plans. The following is an overview of the new regulations: Service provider disclosure to plan fiduciaries, current [...]
