This question came up on one of our shows and we found the answer on the Pennsylvania Department of Labor website.
Am I entitled to Vacation Pay?
There is no Pennsylvania labor law which requires an employer to pay an employee not to work. Benefits like sick leave, vacation pay and severance pay are payments to an employee not to be at work. Therefore, an employer only has to pay these benefits if the employer has a policy to pay such benefits or a contract with you to pay these benefits. An employer must follow its own rules for these kinds of payments. There may also be federal requirements governing leave that has to be provided under the Americans with Disabilities Act and Family Medical Leave Act.
http://www.dli.state.pa.us
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Friday, January 30, 2009
Friday, October 24, 2008
FAQ FRIDAY - October 24, 2008
Q. What is the difference between GNMA and FNMA?
A. GNMA is a corporation under the U.S. Department of Housing and Urban development. FNMA is an agency that became independent and now trades on the New York Stock exchange. Both agencies were created to encourage lending. By taking on the loans the banks have made, they free up the banks to make more loans. Because GNMA and FNMA can borrow at lower rates, these mortgages are then pooled and sold in smaller pieces to investors who expect to make better returns.
GNMAs are made up of mortgages that are FHA insured or VA guaranteed, backed by the full faith and credit of the U.S. government. The government guarantees payment of principal and interest. FNMAs are pools of conventional mortgages that they have purchased and guaranteed to form mortgaged backed securities (MBS). FNMA guarantees the payment of principal and interest. These pools are not backed by the U.S. government but the guarantee is implied which is what we recently experienced. Typically, interest rates on GNMAs are higher than treasuries and interest on FNMAs are higher than GNMAs because of the increased risk.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. GNMA is a corporation under the U.S. Department of Housing and Urban development. FNMA is an agency that became independent and now trades on the New York Stock exchange. Both agencies were created to encourage lending. By taking on the loans the banks have made, they free up the banks to make more loans. Because GNMA and FNMA can borrow at lower rates, these mortgages are then pooled and sold in smaller pieces to investors who expect to make better returns.
GNMAs are made up of mortgages that are FHA insured or VA guaranteed, backed by the full faith and credit of the U.S. government. The government guarantees payment of principal and interest. FNMAs are pools of conventional mortgages that they have purchased and guaranteed to form mortgaged backed securities (MBS). FNMA guarantees the payment of principal and interest. These pools are not backed by the U.S. government but the guarantee is implied which is what we recently experienced. Typically, interest rates on GNMAs are higher than treasuries and interest on FNMAs are higher than GNMAs because of the increased risk.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Friday, October 17, 2008
FAQ FRIDAY - October 17, 2008
Q. My husband recently died and was the sole owner of stock. I know there is normally a “step-up” in basis when someone dies but the value of the stock went down since my husband bought it. What happens now?
A. First, let me explain the “step-up” concept. When you hold property, you have a cost basis in it so that when you go to sell it, you must report a gain or loss from when you bought it. When someone dies holding property, that property is included in their estate for estate or inheritance tax purposes and therefore is eligible for a “step-up” from the original cost that the decedent paid for it to the fair market value on the day the decedent died. It establishes a new cost. What we sometimes forget is that the actual transaction is not always a “step-up”; it’s an adjustment to market which can actually be a “step-down” as well. The new cost basis on the inherited stock to you will be lower than the original cost basis. It will be the fair market value on the date of death.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. First, let me explain the “step-up” concept. When you hold property, you have a cost basis in it so that when you go to sell it, you must report a gain or loss from when you bought it. When someone dies holding property, that property is included in their estate for estate or inheritance tax purposes and therefore is eligible for a “step-up” from the original cost that the decedent paid for it to the fair market value on the day the decedent died. It establishes a new cost. What we sometimes forget is that the actual transaction is not always a “step-up”; it’s an adjustment to market which can actually be a “step-down” as well. The new cost basis on the inherited stock to you will be lower than the original cost basis. It will be the fair market value on the date of death.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Friday, October 10, 2008
FAQ FRIDAY - October 10, 2008
Q. We live in Pennsylvania but we have a vacation home in Delaware. Is this subject to Pennsylvania Inheritance tax?
A. When a decedent dies and owns real property in Pennsylvania, they must report that on a Pennsylvania Inheritance Tax return. When that real property is outside of Pennsylvania, you do not have to include it on the PA Inheritance tax return. Delaware does not have an Inheritance Tax in 2008.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. When a decedent dies and owns real property in Pennsylvania, they must report that on a Pennsylvania Inheritance Tax return. When that real property is outside of Pennsylvania, you do not have to include it on the PA Inheritance tax return. Delaware does not have an Inheritance Tax in 2008.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Friday, October 3, 2008
FAQ FRIDAY - October 3, 2008
Q. My father died in New Jersey and was a resident there and I live in Pennsylvania. What Inheritance tax do I have to pay?
A. Inheritance tax returns are due depending on where the decedent was domiciled (lived). Some states do not have an inheritance tax. New Jersey and Pennsylvania both do but because your father was a resident of New Jersey and the inheritance tax to children is zero; there will be no inheritance tax due for anything that you inherit.
FIRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. Inheritance tax returns are due depending on where the decedent was domiciled (lived). Some states do not have an inheritance tax. New Jersey and Pennsylvania both do but because your father was a resident of New Jersey and the inheritance tax to children is zero; there will be no inheritance tax due for anything that you inherit.
FIRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Friday, September 12, 2008
FAQ FRIDAY - September 12, 2008
Q. How do I roll over my 401k to a rollover IRA?
A. Some plan sponsors let employees direct a rollover over the telephone and some require their own paperwork. You will need to have the name of the new custodian where the money will be transferred and either an account number or social security number so the transferring and accepting custodians can identify the transfer. A trustee to trustee transfer done in this way will generate a 1099G showing the distribution of the account as non-taxable.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. Some plan sponsors let employees direct a rollover over the telephone and some require their own paperwork. You will need to have the name of the new custodian where the money will be transferred and either an account number or social security number so the transferring and accepting custodians can identify the transfer. A trustee to trustee transfer done in this way will generate a 1099G showing the distribution of the account as non-taxable.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Monday, September 8, 2008
FAQ FRIDAY - September 5, 2008
Q. Should I rollover my 401k into an IRA or leave it in the 401k?
A. Typically, there are more investment options available to investors in a rollover IRA than in an employer plan. The advantages of this include additional opportunities for diversification, performance and fund cost transparency.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. Typically, there are more investment options available to investors in a rollover IRA than in an employer plan. The advantages of this include additional opportunities for diversification, performance and fund cost transparency.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
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