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You can invest up to $125,000 from your IRA or 401(k) in a special version of a deferred-income annuity You are required to pay income taxes in the year of the conversion, but you can use the funds tax-free Examine your tax moves. But don’t focus only on Social Security taxes—look at overall tax-efficiency. Reference: Kiplinger (July 2016) “5 Ways to Avoid Taxes on Your Social Security Benefits” #AssetProtection

Income Taxes The IRS requires everyone to claim every source of income when they file a tax return, however Capital Gains Tax You have to pay capital gains taxes anytime a gain is achieved. Death Taxes There is a federal estate tax that applies to any asset transfer that is valued over $5.49 Some states also have an inheritance tax, but Texas does not. There are many legal ways to reduce the tax burden on your estate.

Earlier in the year, Senator Bernie Sanders proposed new legislation that could make waves in the estate planning “For the 99.5 Percent Act” was introduced, increasing the odds of sweeping federal estate and gift tax The proposed changes would significantly reduce the current federal gift and estate tax exemptions. This may potentially subject assets owned by the grantor to the estate tax. If you have been considering a grantor trust for your estate, now is the time to put your plans into

In keeping with campaign promises, he plans to pay for these plans by raising taxes on corporations and Despite this change, the plans – if enacted – could have major implications for estate planning. if not planned for carefully. Planning Implications Estate planning always hinges on your specific assets and goals, but there are If you are planning on making any gifts, it is a good idea to consult with an estate planning attorney

Americans are reconsidering their estate planning strategies following Joe Biden’s presidential election No matter what your plans are, keep these considerations in mind ahead of inauguration day: Gift and Estate Taxes This year, the gift and estate tax exemption amount remains at $11.58 million per person the capital gains tax. Under Biden’s plan, long-term gains and dividends may be taxed as ordinary income for those with a taxable

The estate tax is a tax on property transferred at your death, and recent changes in the tax laws have from having to pay tax. Talk with a qualified estate planning attorney about a sound estate planning strategy to help you reduce or eliminate potential “state” estate tax liability. Reference : Motley Fool (May 20, 2016) “Does My State Have an Estate Tax?”

Many of us have invested in a 401(k) or some similar savings plan so that we can enjoy a comfortable regulations stipulate that you are required to take withdrawals from your traditional IRAs, 401(k)s and other tax-deferred plans or face a hefty penalty of 50% of the amount you should have withdrawn. You typically must begin taking withdrawals from your IRA, SEP IRA, SIMPLE IRA or retirement plan account The key to avoiding a monstrous tax bill is to begin your planning for RMDs well before your 70th birthday

If you plan to retire in the next 20 years, you need to start looking at your options and plan to make created retirement plan usually includes a review of your estate plan and portfolio investments, tax Estate Planning. Tax Planning. Reference: North Bay Business Journal (May 16, 2016) “10 basic steps for retirement planning” #AssetProtection

Fewer than half of adult Americans have estate planning documents. and A Wealth Transfer Plan.” and a wealth transfer plan. In addition, there can be problems with financial and tax planning and poor investing. Reference : Forbes (July 1, 2016) “The Difference Between Having an Estate Plan and A Wealth Transfer

ThinkAdvisor’s article, “New Estate Planning Strategies for a Post-Portability World,” says that there may be many folks who’ve continued to rely upon their outdated, pre-2013 estate plans. Reviewing a pre-2013 estate plan may be really beneficial for higher-income individuals. Regardless, consult a qualified estate planning attorney to help you select the most appropriate strategy Reference : ThinkAdvisor (June 7, 2016) “New Estate Planning Strategies for a Post-Portability World”

Financial planning issues, however, can vary according to age. financial planning guide for different stages of life and the transitions faced along the way. Plan on at least 15% of income to be set aside for retirement—25% would be better. Taxes are also a critical planning element, such as for funds withdrawn from traditional IRAs. Reference : Boston Globe (January 10, 2016) “Financial planning for the ages” #HoustonAssetProtection

The only constant in estate planning is change. Your plan administrator or financial advisor can help you understand how such changes may impact your plan. What This Means for Your Estate Plans There has never been a better time to make additional gifts in Update Your Estate Plans Now Making sense of estate planning laws often requires professional help.