Red Flags for Tax Auditors
No one wants to see an Internal Revenue Service (IRS) auditor show up at their door. The IRS can’t audit every American’s tax return, so it relies on guidelines to select the ones most deserving of its attention. Here are six flags that may make your tax return prime for an IRS audit.1 The Chance […]
Tax Deductions You Won’t Believe
While Americans are entitled to take every legitimate deduction to manage their taxes, the Internal Revenue Service (IRS) places limits on your creativity. Here are some examples of deductions from the IRS that were permitted and some that were, well, too creative.¹ Creative Deductions that Passed Muster Usually a child’s school-related costs are not deductible. […]
How to Make the Tax Code Work for You
By May 20, 2022, over 145 million taxpayers had dutifully filed their federal income tax returns. And they all made decisions about deductions and credits – whether or not they realized it.1 When you take the time to learn more about how it works, you may be able to put the tax code to work […]
What Is a 1035 Exchange?
According to the most recent information available, Americans have individual life insurance with a total face value of $12.8 trillion.1 Due to a variety of factors, these individuals may find themselves in circumstances where the specific life insurance policy or annuity contract they own does not suit their needs. They may want to exchange products […]
The ABC’s of Auto Insurance
The questions around auto insurance center not so much on whether to have it—it’s mandated by state law, required by your lender, and serves to protect your assets—but what kind of coverage you should purchase. Types of Coverage There are several forms of coverage that a car owner may purchase, some of which are required, […]
Understanding the SECURE Act 2.0
Find That Lost Retirement Account
Find That Lost Retirement Account Do you have a long-lost retirement account left with a former employer? Maybe it’s been so long that you can’t even remember. With over 24 million “forgotten” 401(k) accounts holding roughly $1.35 trillion in assets, even the most organized professional may be surprised to learn that they have unclaimed “found” […]
Is a Variable Annuity Right for Me?
For the casual observer, it sometimes seems that variable annuities are either “terrible” or “wonderful.” Commentators in the financial media seem to occupy a polarity of opinions we might see in politics. What gets lost when these commentators collide is “the individual.” Unfortunately, the discussion is rarely centered on whether a variable annuity is relevant […]
IRA Withdrawals that Escape the 10% Tax Penalty
The reason withdrawals from a Traditional Individual Retirement Account (IRA) prior to age 59½ are generally subject to a 10% tax penalty is that policymakers wanted to create a disincentive to use these savings for anything other than retirement.1 Yet, policymakers also recognize that life can present more pressing circumstances that require access to these […]
New Retirement Contribution Limits for 2024
The Internal Revenue Service (IRS) has released new limits for certain retirement accounts for the coming year. Keep in mind that this update is for informational purposes only, so please consult with an accounting or tax professional before making any changes to your 2024 tax strategy. You can also contact your financial professional, who may […]