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.
Friday, October 24, 2008
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.
Friday, August 22, 2008
FAQ FRIDAY - August 22, 2008
Q. How much can I gift to my children and not have to report anything?
A. In 2008 you can gift up to $12,000 to any individual and not have to report it on a Federal Gift Tax return. You don’t report anything and the recipient doesn’t report anything. If you gift appreciated property, the gift is valued at the fair market value on the date of the gift. The donee takes over your cost basis. There are special rules if the fair market value of the stock was below the cost on the date of the transfer, so be aware of that. In addition, gifts made directly to an institution for education or medical expenses on the behalf of an individual do not count toward the gifting rules. Consult your attorney for specifics on your situation if necessary.
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. In 2008 you can gift up to $12,000 to any individual and not have to report it on a Federal Gift Tax return. You don’t report anything and the recipient doesn’t report anything. If you gift appreciated property, the gift is valued at the fair market value on the date of the gift. The donee takes over your cost basis. There are special rules if the fair market value of the stock was below the cost on the date of the transfer, so be aware of that. In addition, gifts made directly to an institution for education or medical expenses on the behalf of an individual do not count toward the gifting rules. Consult your attorney for specifics on your situation if necessary.
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, August 15, 2008
FAQ FRIDAY - August 15, 2008
Q. I have heard about a Veteran’s pension for widows. How do you qualify?
A. There are several factors that need to be met to qualify. Assuming you meet the qualification as a veteran’s widow eligible for the pension, there are still income tests. The following is from the Veteran’s Administration website http://www.vba.va.gov/.
How do I know if I'm eligible?You may be eligible if:
the deceased veteran was discharged from service under other than dishonorable conditions, AND
the deceased veteran served at least 90 days of active military service 1 day of which was during a war time period. If he or she entered active duty after September 7, 1980, generally he or she must have served at least 24 months or the full period for which called or ordered to active duty. (There are exceptions to this rule.)
AND
you are the surviving spouse or unmarried child of the deceased veteran,
AND
your countable income is below a yearly limit set by law (The yearly limit on income is set by Congress). Countable income is most income, including social security, interest, dividends and earnings. The yearly limit is set by law. There are exclusions to countable income for things like VA benefits and medical expenses. There may be an asset limitation as well. Contact your VA for more information if you feel you might qualify.
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. There are several factors that need to be met to qualify. Assuming you meet the qualification as a veteran’s widow eligible for the pension, there are still income tests. The following is from the Veteran’s Administration website http://www.vba.va.gov/.
How do I know if I'm eligible?You may be eligible if:
the deceased veteran was discharged from service under other than dishonorable conditions, AND
the deceased veteran served at least 90 days of active military service 1 day of which was during a war time period. If he or she entered active duty after September 7, 1980, generally he or she must have served at least 24 months or the full period for which called or ordered to active duty. (There are exceptions to this rule.)
AND
you are the surviving spouse or unmarried child of the deceased veteran,
AND
your countable income is below a yearly limit set by law (The yearly limit on income is set by Congress). Countable income is most income, including social security, interest, dividends and earnings. The yearly limit is set by law. There are exclusions to countable income for things like VA benefits and medical expenses. There may be an asset limitation as well. Contact your VA for more information if you feel you might qualify.
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.
Thursday, August 14, 2008
FAQ Friday - August 8, 2008 (sorry for the delay!)
Q. I still own Series E and EE bonds. I bought them at a guaranteed interest rate. Right?
A. Per the U.S. Treasury website www.savingsbonds.gov, the interest you earn depends on when you bought the bonds. Check out their website for great information. In this case, you bought the bonds before 1995 and the rate …depends. From their website:
EE/E Bonds Issued before May 1995
This information applies only to Series E/EE bonds and savings notes issued April 1995 or earlier. The rate at which EE/E Bonds issued before May 1995 earn interest depends on their issue date.
Before reaching five years old, they earned interest on a fixed graduated scale, except for those bonds issued March 1993-April 1995 that earned a fixed rate of 4%.
Once your bonds were held for five years, they started earning interest at either guaranteed minimum rates or market-based rates, whichever produces the higher redemption value.
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. Per the U.S. Treasury website www.savingsbonds.gov, the interest you earn depends on when you bought the bonds. Check out their website for great information. In this case, you bought the bonds before 1995 and the rate …depends. From their website:
EE/E Bonds Issued before May 1995
This information applies only to Series E/EE bonds and savings notes issued April 1995 or earlier. The rate at which EE/E Bonds issued before May 1995 earn interest depends on their issue date.
Before reaching five years old, they earned interest on a fixed graduated scale, except for those bonds issued March 1993-April 1995 that earned a fixed rate of 4%.
Once your bonds were held for five years, they started earning interest at either guaranteed minimum rates or market-based rates, whichever produces the higher redemption value.
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, July 25, 2008
FAQ Friday - July 25, 2008
Q. I am ready to retire and I have some options on how to take my pension? Which option should I take?
A. First, know what all your options are. Typically, you can take a pension over just your life expectancy called single life or anticipate a benefit that will pay your surviving spouse 100% or 50% of your benefit which will decrease what you would have received under the single life option. If you have a spouse you must consider their survivor needs. You must consider what your cash flow needs will be in retirement. You must understand if you take the single life and die the next day, the present value of that pension is gone and you should have a provision to protect that lost money if you have a survivor depending on that income. Consult with a financial advisor for this very important decision.
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, know what all your options are. Typically, you can take a pension over just your life expectancy called single life or anticipate a benefit that will pay your surviving spouse 100% or 50% of your benefit which will decrease what you would have received under the single life option. If you have a spouse you must consider their survivor needs. You must consider what your cash flow needs will be in retirement. You must understand if you take the single life and die the next day, the present value of that pension is gone and you should have a provision to protect that lost money if you have a survivor depending on that income. Consult with a financial advisor for this very important decision.
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, July 18, 2008
FAQ FRIDAY - July 18, 2008
Q. You discussed last week, estimated tax payments. My accountant told me to do them but I missed the first two quarters, what should I do now?
A. You can catch up your payments by making them now. You still might have an underpayment problem but at least you will get the payments in sooner than later. Or, if you have wages or a pension or some kind of payment where income taxes can be withheld, you can increase your withholdings to cover the payments due. Withholdings are deemed to have been paid evenly throughout the year while estimated tax payments are only credited when paid.
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. You can catch up your payments by making them now. You still might have an underpayment problem but at least you will get the payments in sooner than later. Or, if you have wages or a pension or some kind of payment where income taxes can be withheld, you can increase your withholdings to cover the payments due. Withholdings are deemed to have been paid evenly throughout the year while estimated tax payments are only credited when paid.
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.
Thursday, July 17, 2008
FAQ FRIDAY - July 11, 2008
Q. I owed a lot of money in taxes last year and my preparer said I have to pay estimated tax payments. Do I really?
A. Our federal income tax system is basically a ‘pay as you go’ system. If you don’t pay in the taxes you owe during the year, you may owe penalties and interest on the underpayment of taxes. There are exceptions to paying the penalties and interest and some of these exceptions are called the safe harbor rules. From the Internal Revenue Service website:
General RuleYou must pay estimated tax for 2008 if both of the following apply.
1. You expect to owe at least $1000 in tax for 2008 after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of;
-90% of the tax to be shown on your 2008 tax return, or
- 100% of the tax shown on your 2007 tax return. Your 2007 tax return must cover all 12 months.
For example, assume your 2007 total tax was $5,000 and you expect your 2008 tax to be $6,000. Your withholding for 2008 is expected to be $1,000 so you will have a balance due of $5,000. According to the above, you will have to have paid in taxes through withholding and/or estimated tax payments equal to 90% of the 2008 tax ($5,000) or 100% of the 2007 tax ($5,000). $5,000 required payment less $1,000 withholding leaves a balance due for estimated tax payments of $4,000 paid in quarterly payments. You can increase your withholdings or make the quarterlies to avoid penalties and interest on underpayment. In this example, you will still have a balance due when you file your tax return of $1,000.
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. Our federal income tax system is basically a ‘pay as you go’ system. If you don’t pay in the taxes you owe during the year, you may owe penalties and interest on the underpayment of taxes. There are exceptions to paying the penalties and interest and some of these exceptions are called the safe harbor rules. From the Internal Revenue Service website:
General RuleYou must pay estimated tax for 2008 if both of the following apply.
1. You expect to owe at least $1000 in tax for 2008 after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of;
-90% of the tax to be shown on your 2008 tax return, or
- 100% of the tax shown on your 2007 tax return. Your 2007 tax return must cover all 12 months.
For example, assume your 2007 total tax was $5,000 and you expect your 2008 tax to be $6,000. Your withholding for 2008 is expected to be $1,000 so you will have a balance due of $5,000. According to the above, you will have to have paid in taxes through withholding and/or estimated tax payments equal to 90% of the 2008 tax ($5,000) or 100% of the 2007 tax ($5,000). $5,000 required payment less $1,000 withholding leaves a balance due for estimated tax payments of $4,000 paid in quarterly payments. You can increase your withholdings or make the quarterlies to avoid penalties and interest on underpayment. In this example, you will still have a balance due when you file your tax return of $1,000.
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, July 4, 2008
FAQ FRIDAY - July 4, 2008
Q. Following on the last two weeks’ questions, if I put money into an IRA that ends up being “not” deductible, can I take it back out?
A. You can take it back out no later than April 15 of the year following the contribution. For example, if you put $5,000 into a deductible IRA during 2007 and then discover while doing your tax return in March of 2008 that you didn’t qualify for the deduction, you can still take that money out with no penalties. Consider putting it into a ROTH IRA if you qualify for that. If you leave the money there, you must track the non-deductible amount on Form 8606 for as long as you have any IRA monies. You do not have the option to withdraw it after April 15.
If you have already put money into a deductible IRA for this year and realize now that you won’t get the deduction, contact your custodian to see if you can re-characterize it to a ROTH. There are income limits for this as well.
Have a happy and safe Independence Day! Don't forget, Your Financial Choices will NOT be airing tomorrow due to the holiday! But we're still happy to take your questions! Log onto www.yourfinancialchoices.com to find out how to contact Laurie!
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. You can take it back out no later than April 15 of the year following the contribution. For example, if you put $5,000 into a deductible IRA during 2007 and then discover while doing your tax return in March of 2008 that you didn’t qualify for the deduction, you can still take that money out with no penalties. Consider putting it into a ROTH IRA if you qualify for that. If you leave the money there, you must track the non-deductible amount on Form 8606 for as long as you have any IRA monies. You do not have the option to withdraw it after April 15.
If you have already put money into a deductible IRA for this year and realize now that you won’t get the deduction, contact your custodian to see if you can re-characterize it to a ROTH. There are income limits for this as well.
Have a happy and safe Independence Day! Don't forget, Your Financial Choices will NOT be airing tomorrow due to the holiday! But we're still happy to take your questions! Log onto www.yourfinancialchoices.com to find out how to contact Laurie!
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, June 27, 2008
FAQ FRIDAY - June 27, 2008
Q. You mentioned last week that if you forgot to take the deduction for an IRA that I can file an amended return and take the deduction then. When I went to file the amended return, it limited my deduction. On $5,000, it only gave me a deduction of about $2,000. What happened?
A. You must already be an active participant in a retirement plan AND make more money than the IRS allows for a fully deductible IRA. Your income must have put you in a phase out range, allowing some of the deduction. What happens now on the amended return is that only part of the IRA is deductible and the rest is non-deductible. Report that amount on Form 8606. See FAQ 1-31-08.
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. You must already be an active participant in a retirement plan AND make more money than the IRS allows for a fully deductible IRA. Your income must have put you in a phase out range, allowing some of the deduction. What happens now on the amended return is that only part of the IRA is deductible and the rest is non-deductible. Report that amount on Form 8606. See FAQ 1-31-08.
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, June 20, 2008
FAQ FRIDAY - June 20, 2008
Q. I put money into an IRA during 2007 and I forgot to take the deduction on my return. What do I do now?
A. You simply file an amended Form 1040 which is called a Form 1040X. Your explanation is that you inadvertently omitted the deductible IRA. Using software makes it easy to recalculate the return. You won’t have to file an amended Pennsylvania return because Pennsylvania does not recognize this as a deduction.
Tune in to Your Financial Choices tomorrow morning at 9 a.m. on NEWS TALK AM 790 WAEB or online at www.waeb.com for a conversation on "Tools To Use" in planning your financial life!
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. You simply file an amended Form 1040 which is called a Form 1040X. Your explanation is that you inadvertently omitted the deductible IRA. Using software makes it easy to recalculate the return. You won’t have to file an amended Pennsylvania return because Pennsylvania does not recognize this as a deduction.
Tune in to Your Financial Choices tomorrow morning at 9 a.m. on NEWS TALK AM 790 WAEB or online at www.waeb.com for a conversation on "Tools To Use" in planning your financial life!
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, June 16, 2008
Laurie's Appearance on Money Matters TV-Philly
Last week Laurie filmed a segment for Money Matters TV in the Philadelphia/New Jersey region.We have posted Laurie's segment on our webstite at: http://www.yourfinancialchoices.com/
We will also be posting the air dates and channels on our website for those within viewing range - please keep checking back! They were happy to have Laurie as a guest and will be looking to bring her back for a second show!
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, June 13, 2008
FAQ Friday - June 13, 2008
Q. You mentioned last week that there is a New Jersey Inheritance tax. What is the tax?
As I mentioned, the tax is based on to whom is inheriting the assets and the relationship to the decedent. There are different classes of beneficiaries in New Jersey and last week I mentioned Class A beneficiaries; they are exempt from inheritance tax. A brother or sister is a Class C beneficiary and the tax rate goes from 11% to 16% on assets passing to them over $25,000. A friend is an example of a Class D beneficiary and assets passing to them get taxed between 15 and 16%. The executor must review the requirements for filing and the classes of the various beneficiaries. In addition, while there may not be an Inheritance tax because of Class A beneficiary status, there may be a New Jersey Estate Tax. That tax is assessed based on the state death tax credit that would have applied under the December 31, 2001 tax code. For example, $2,000,000 passing to a child that is exempt for New Jersey Inheritance tax purposes will be subject to approximately a $99,600 New Jersey Estate tax. Be aware and consult an attorney for further guidance.
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.
As I mentioned, the tax is based on to whom is inheriting the assets and the relationship to the decedent. There are different classes of beneficiaries in New Jersey and last week I mentioned Class A beneficiaries; they are exempt from inheritance tax. A brother or sister is a Class C beneficiary and the tax rate goes from 11% to 16% on assets passing to them over $25,000. A friend is an example of a Class D beneficiary and assets passing to them get taxed between 15 and 16%. The executor must review the requirements for filing and the classes of the various beneficiaries. In addition, while there may not be an Inheritance tax because of Class A beneficiary status, there may be a New Jersey Estate Tax. That tax is assessed based on the state death tax credit that would have applied under the December 31, 2001 tax code. For example, $2,000,000 passing to a child that is exempt for New Jersey Inheritance tax purposes will be subject to approximately a $99,600 New Jersey Estate tax. Be aware and consult an attorney for further guidance.
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, June 6, 2008
FAQ FRIDAY - June 6, 2008
Q. My father died and he was a resident of New Jersey. I am a Pennsylvania resident. What do I do?
If you are the executor of your father’s Will than you must administer his estate in New Jersey. It does not matter where you are a resident. For New Jersey Inheritance tax purposes, assets are taxed based on who is inheriting (similar to Pennsylvania.) If your father had assets in his name alone, you will still have to probate. You may not have to file an Inheritance tax return however. Depending on to whom the assets are passing, New Jersey allows a special Self Executing Waiver form called an L-8 or a Real Property Tax Waiver form called an L-9. These forms have been created for Class A beneficiaries who include the parents, grandparents, children and spouses. There are new laws to include civil union and domestic partners as well. Always consult your financial advisor and attorney.
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.
If you are the executor of your father’s Will than you must administer his estate in New Jersey. It does not matter where you are a resident. For New Jersey Inheritance tax purposes, assets are taxed based on who is inheriting (similar to Pennsylvania.) If your father had assets in his name alone, you will still have to probate. You may not have to file an Inheritance tax return however. Depending on to whom the assets are passing, New Jersey allows a special Self Executing Waiver form called an L-8 or a Real Property Tax Waiver form called an L-9. These forms have been created for Class A beneficiaries who include the parents, grandparents, children and spouses. There are new laws to include civil union and domestic partners as well. Always consult your financial advisor and attorney.
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, May 16, 2008
This Saturday - Goin' To The Chapel....
...but are you FINANCIALLY ready to get married?
We have two special guests joining us for this important discussion. Attorney Eric Strauss will answer our questions on the legal aspects of combining your finances, and Jaclyn Cornelius of Valley National Financial Advisors will help to field your financial concerns.
If you're preparing to walk down the aisle (or know someone who is!) you can't afford to miss this show! We'll also cover second marriages, blended families, prenuptial agreements, and so much more.
as always, visit http://www.yourfinancialchoices.com/ for more information or to contact 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.
FAQ Friday - May 16, 2008
Q. In last week’s FAQ you mentioned that there are exceptions to the 10% penalty on withdrawals from 529 plans if not used for qualified education expenses. What are the exceptions?
A. I copied below the answer directly from the IRS Publication 970 Tax Benefits for Education:
Additional Tax on Taxable Distributions
Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income.
Exceptions. The 10% additional tax does not apply to distributions:
1. Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary.
2. Made because the designated beneficiary is disabled. A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration.
3. Included in income because the designated beneficiary received:
a. A tax-free scholarship or fellowship (see chapter 1),
b. Veterans' educational assistance (see chapter 1),
c. Employer-provided educational assistance (see chapter 11), or
d. Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance.
4. Made on account of the attendance of the designated beneficiary at a U.S. military academy (such as West Point). This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(e)(3) of title 10 of the U.S. Code) attributable to such attendance.
5. Included in income only because the qualified education expenses were taken into account in determining the Hope or lifetime learning credit.
Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment.
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. I copied below the answer directly from the IRS Publication 970 Tax Benefits for Education:
Additional Tax on Taxable Distributions
Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income.
Exceptions. The 10% additional tax does not apply to distributions:
1. Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary.
2. Made because the designated beneficiary is disabled. A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration.
3. Included in income because the designated beneficiary received:
a. A tax-free scholarship or fellowship (see chapter 1),
b. Veterans' educational assistance (see chapter 1),
c. Employer-provided educational assistance (see chapter 11), or
d. Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance.
4. Made on account of the attendance of the designated beneficiary at a U.S. military academy (such as West Point). This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(e)(3) of title 10 of the U.S. Code) attributable to such attendance.
5. Included in income only because the qualified education expenses were taken into account in determining the Hope or lifetime learning credit.
Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment.
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, May 12, 2008
FAQ FRIDAY - May 9, 2008
Q. I received a notice from the IRS saying that I owe taxes on distributions from a 529 Plan. I know that the distribution was used for qualified education expenses of my child. What do I do?
A. In the past few years, we have started seeing people take distributions from the 529 Plan education savings accounts that they set up previously. Distributions from these plans must be used for qualified higher education expenses (QEE) to avoid the tax and penalty on the earnings. If the QEE exceeded the distribution we didn’t have to report the distribution or the education expenses unless the IRS asked for the information.
I have had clients recently receive these notices. We are responding to the IRS by reporting the QEE and showing that they exceed the distribution, thereby making it a qualified distribution not subject to tax. If the distribution exceeds the QEE, you must calculate the amount that should be taxable and if any of it is subject to the 10% penalty for not using it for QEE. There are exceptions to the 10% penalty so be aware of them.
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. In the past few years, we have started seeing people take distributions from the 529 Plan education savings accounts that they set up previously. Distributions from these plans must be used for qualified higher education expenses (QEE) to avoid the tax and penalty on the earnings. If the QEE exceeded the distribution we didn’t have to report the distribution or the education expenses unless the IRS asked for the information.
I have had clients recently receive these notices. We are responding to the IRS by reporting the QEE and showing that they exceed the distribution, thereby making it a qualified distribution not subject to tax. If the distribution exceeds the QEE, you must calculate the amount that should be taxable and if any of it is subject to the 10% penalty for not using it for QEE. There are exceptions to the 10% penalty so be aware of them.
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, April 25, 2008
Tomorrow on Your Financial Choices:
On Saturday, April 26 - We'll be discussing what to expect in future tax rate changes - and how to plan for them!
We'll also be taking a look at the PA-1000 Pennsylvania Property Tax or Rent Rebate Program.
Don't miss it! Call in with your questions 610-720-7900
*lines open when show begins
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.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
FAQ FRIDAY - April 25, 2008
Q. Can Qualified Tuition Plans or 529 Plans be used for prep school?
A. Distributions from these plans must be used for qualified higher education expenses to avoid the tax and penalty on the earnings.
If you know that you will have tuition for elementary and secondary expenses, you may want to consider establishing a Coverdell Education Savings Account. There are limits on how much you may contribute to these plans based on adjusted gross income and there is no deduction for them but the earnings are tax deferred and distributions tax free is used for qualified education expenses. Please consult a tax advisor for the specific rules for these.
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. Distributions from these plans must be used for qualified higher education expenses to avoid the tax and penalty on the earnings.
If you know that you will have tuition for elementary and secondary expenses, you may want to consider establishing a Coverdell Education Savings Account. There are limits on how much you may contribute to these plans based on adjusted gross income and there is no deduction for them but the earnings are tax deferred and distributions tax free is used for qualified education expenses. Please consult a tax advisor for the specific rules for these.
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, April 18, 2008
FAQ FRIDAY - 4/18/08
Q. What is the qualifying income for the economic stimulus payment?
A. There are two parts to the stimulus payment according to the IRS.
1.) You may be entitled to a payment based on tax liability if your adjusted gross income is within the qualifying limits of $75,000 or under for single and $150,000 or under for married filing jointly. The payment is equal to the taxpayer’s net income tax liability but not to exceed $600 for a single person or $1,200 for married filing jointly. There are additional amounts available if you have a qualifying dependent.
2.) If you have no tax liability, then you must have qualifying income of at least $3,000 which includes wages, self-employment income, social security SSA or Railroad Retirement Benefits RRB. The economic stimulus payment with this qualifying income will be a minimum payment of $300 for single or $600 for married couples.
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. There are two parts to the stimulus payment according to the IRS.
1.) You may be entitled to a payment based on tax liability if your adjusted gross income is within the qualifying limits of $75,000 or under for single and $150,000 or under for married filing jointly. The payment is equal to the taxpayer’s net income tax liability but not to exceed $600 for a single person or $1,200 for married filing jointly. There are additional amounts available if you have a qualifying dependent.
2.) If you have no tax liability, then you must have qualifying income of at least $3,000 which includes wages, self-employment income, social security SSA or Railroad Retirement Benefits RRB. The economic stimulus payment with this qualifying income will be a minimum payment of $300 for single or $600 for married couples.
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, March 28, 2008
FAQ FRIDAY - March 28, 2008
Q. I received a package from the IRS regarding the Economic Stimulus Payment. They instructed me to complete the Form 1040A and send it in. I already filed my 2007 tax return. Do I still do this?
A. No. The IRS used the social security database to send out the letter to remind social security recipients that they may be eligible even if they were not required to file in the past. Some social security recipients have traditionally filed tax returns to report other sources of income as well. Just ignore the notice if you have already filed or plan to file the 2007 tax return.
Tomorrow on "Your Financial Choices" - A discussion on Charitable Contributions with Mary Ann Stover of Foundation Source. Tune into NEWSTALK AM 790 WAEB or online at www.WAEB.com
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. No. The IRS used the social security database to send out the letter to remind social security recipients that they may be eligible even if they were not required to file in the past. Some social security recipients have traditionally filed tax returns to report other sources of income as well. Just ignore the notice if you have already filed or plan to file the 2007 tax return.
Tomorrow on "Your Financial Choices" - A discussion on Charitable Contributions with Mary Ann Stover of Foundation Source. Tune into NEWSTALK AM 790 WAEB or online at www.WAEB.com
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, March 21, 2008
Today is FAQ Friday; Tomorrow is Tax Question Day!
Here is today's Frequently Asked Question for Friday, March 21 2008:
Q. Where do I find a financial planner?
A. If you have access to the Internet, you can check out the Financial Planning Association website www.fpanet.org or the Certified Financial Planners Board website at www.cfpboard.org. Both websites have planner search capabilities and consumer information and educational tools. Both organizations strongly support the Certified Financial Planner designation and the core principles that CFP® practitioners are to uphold. Not all financial planners are CFP® practitioners so know the difference. There are very stringent educational and testing requirements that must be met before becoming certified. In addition, you can check out investment advisers and brokers on www.finra.org.
TOMORROW - we are devoting the entire hour of "Your Financial Choices" to YOUR QUESTIONS! We've been getting a lot of calls during the second half of the show - please don't hesitate to call in earlier! That's what we're here for - to answer your questions and let you know your choices!
April 15 is fast approaching....so let's talk tomorrow! CALL IN AT 610-720-7900
"Your Financial Choices" on NEWSTALK AM 790 WAEB at 9:00 a.m. following the news - tune in or listen online at WAEB.com!
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.
Q. Where do I find a financial planner?
A. If you have access to the Internet, you can check out the Financial Planning Association website www.fpanet.org or the Certified Financial Planners Board website at www.cfpboard.org. Both websites have planner search capabilities and consumer information and educational tools. Both organizations strongly support the Certified Financial Planner designation and the core principles that CFP® practitioners are to uphold. Not all financial planners are CFP® practitioners so know the difference. There are very stringent educational and testing requirements that must be met before becoming certified. In addition, you can check out investment advisers and brokers on www.finra.org.
TOMORROW - we are devoting the entire hour of "Your Financial Choices" to YOUR QUESTIONS! We've been getting a lot of calls during the second half of the show - please don't hesitate to call in earlier! That's what we're here for - to answer your questions and let you know your choices!
April 15 is fast approaching....so let's talk tomorrow! CALL IN AT 610-720-7900
"Your Financial Choices" on NEWSTALK AM 790 WAEB at 9:00 a.m. following the news - tune in or listen online at WAEB.com!
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, March 14, 2008
FAQ FRIDAY - 3/14/08
Q. I need to update my beneficiary designations on my life insurance policies at work. I want to name my wife primary. I have two children. Should I name the estate the contingent?
A. You should talk to your attorney about what is right for you. In Pennsylvania, life insurance is not subject to Inheritance Tax and if there is a named beneficiary, it is not subject to probate. However, if you name the estate the beneficiary of your life insurance policy, it will go through the probate process. If you have minor children, I would expect that your attorney discussed providing a Trust for them under the terms of your Will. If this is the case, your attorney can give you the proper wording for the contingent beneficiary designation such that the proceeds of the life insurance would go into trust versus to the estate.
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. You should talk to your attorney about what is right for you. In Pennsylvania, life insurance is not subject to Inheritance Tax and if there is a named beneficiary, it is not subject to probate. However, if you name the estate the beneficiary of your life insurance policy, it will go through the probate process. If you have minor children, I would expect that your attorney discussed providing a Trust for them under the terms of your Will. If this is the case, your attorney can give you the proper wording for the contingent beneficiary designation such that the proceeds of the life insurance would go into trust versus to the estate.
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, March 10, 2008
FAQ FRIDAY - 3/7/08
Q. I need to file for an extension of my 2007 income tax return. I know that you have to file a 2007 return to get the advance payment of the economic stimulus payment. Will I still be eligible if I file for the extension?
A. You may still be eligible as long as your income does not exceed the limitations but your payment may be delayed. For normal filers, the payments are hoped to be mailed out starting sometime in May. Make sure that you get your return filed by the extension due date so the IRS can process your return and issue the payment before the end of the year.
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. You may still be eligible as long as your income does not exceed the limitations but your payment may be delayed. For normal filers, the payments are hoped to be mailed out starting sometime in May. Make sure that you get your return filed by the extension due date so the IRS can process your return and issue the payment before the end of the year.
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, February 29, 2008
FAQ FRIDAY - 2/29/08
Q. I am the beneficiary of an Individual Retirement Account (IRA). Because I am not the spouse, do I have to take the money out in a lump sum or do I have other options?
A. Non-spouse beneficiaries sometimes THINK they have to take the money out of an IRA in a lump sum but that is not the case. A non-spouse beneficiary has different options than a spousal beneficiary. A non-spouse beneficiary can take a required minimum distribution (RMD) out over their life expectancy starting no later than December 31 of the year following the year of death. (The life expectancy may differ if there are more than one beneficiary so be alert to other options if this is the case.) If the beneficiary does not set up the RMD timely, then they may be locked into taking a lump sum before 5 years after death. This might have significant tax consequences. The life expectancy distribution method is at a minimum. If you find that you need more money or you can afford to have more income on your tax return to play tax brackets, you can always take out more. Because the distribution was because of death, even if you are under age 59 ½, you will not be subject to the early withdrawal penalty of 10% that would otherwise apply to your own retirement account withdrawals.
See 2-15-08 FAQ for more information on beneficiary IRA and always seek professional help.
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. Non-spouse beneficiaries sometimes THINK they have to take the money out of an IRA in a lump sum but that is not the case. A non-spouse beneficiary has different options than a spousal beneficiary. A non-spouse beneficiary can take a required minimum distribution (RMD) out over their life expectancy starting no later than December 31 of the year following the year of death. (The life expectancy may differ if there are more than one beneficiary so be alert to other options if this is the case.) If the beneficiary does not set up the RMD timely, then they may be locked into taking a lump sum before 5 years after death. This might have significant tax consequences. The life expectancy distribution method is at a minimum. If you find that you need more money or you can afford to have more income on your tax return to play tax brackets, you can always take out more. Because the distribution was because of death, even if you are under age 59 ½, you will not be subject to the early withdrawal penalty of 10% that would otherwise apply to your own retirement account withdrawals.
See 2-15-08 FAQ for more information on beneficiary IRA and always seek professional help.
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, February 22, 2008
FAQ FRIDAY - 2/22/08
Q. If I haven’t had to file a tax return for several years, will I be eligible for the stimulus payment?
A. You must have qualifying income of $3,000. Qualifying income includes social security, social security disability, railroad retirement benefits and certain veteran’s payments. You will need to file a 2007 tax return to get the advance payment. If you only have any of the above income, you will file a Federal Form 1040A. Write across the top Stimulus Payment and complete Line Item 14a with your benefits. You do not have to have a tax liability to get the payment. With no other income, single people who qualify will get $300 and joint filers will get $600. This will be a freebee for a lot of people.
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. You must have qualifying income of $3,000. Qualifying income includes social security, social security disability, railroad retirement benefits and certain veteran’s payments. You will need to file a 2007 tax return to get the advance payment. If you only have any of the above income, you will file a Federal Form 1040A. Write across the top Stimulus Payment and complete Line Item 14a with your benefits. You do not have to have a tax liability to get the payment. With no other income, single people who qualify will get $300 and joint filers will get $600. This will be a freebee for a lot of people.
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, February 15, 2008
FAQ FRIDAY 2/15/08
Q. I am the beneficiary of an Individual Retirement Account (IRA). Can I roll it over into my own IRA?
A. No. A beneficiary IRA is differentiated from a Traditional IRA that you might have for yourself and the tax rules are different. You can do a Trustee to Trustee transfer of the IRA of the decedent into a specially designated IRA such as ‘Decedent IRA FBO Beneficiary’, where ‘Decedent’ is the person from whom you inherited it and ‘beneficiary’ is your name. FBO means ‘For the Benefit of’. There are very, very strict rules on these types of transfers and you must fully understand them before you make any irrevocable elections.
Next time, we’ll continue with further questions on this topic.
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. No. A beneficiary IRA is differentiated from a Traditional IRA that you might have for yourself and the tax rules are different. You can do a Trustee to Trustee transfer of the IRA of the decedent into a specially designated IRA such as ‘Decedent IRA FBO Beneficiary’, where ‘Decedent’ is the person from whom you inherited it and ‘beneficiary’ is your name. FBO means ‘For the Benefit of’. There are very, very strict rules on these types of transfers and you must fully understand them before you make any irrevocable elections.
Next time, we’ll continue with further questions on this topic.
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, February 11, 2008
Valentine's Day Bears a Hefty Price Tag!
$120. It could be a car insurance payment, three full tanks of gas or (according to the National Retail Federation) the average amount Americans spend on Valentine's day. Shocking? Not really, once you add it all up!Valentine's Day, for most, is separated into two parts.
1. The Date
2. The Gift
Here are some ways to help you make great financial choices this year for Valentine's Day!
1. Valentine's day falls on a Thursday this year. Why not celebrate the following weekend, or even the weekend after? There are many benefits to doing this. Number one, you can scoop up candy, cards, and other sentiments at a hefty discount. Number two, you'll have an easier time finding a sitter for the kids at that time. Three, restaurants are notorious for overbooking on Valentine's Day; trying to get as many happy couples in and out of their seats as quickly as possible. You will most likely enjoy a much more leisurely experience when opting not to celebrate on Valentine's day itself.
Our friend and personal finance expert Greg Karp preaches the importance of spending on "experiences" vs. "stuff" - experiences last much longer! Create an experience by making your own Valentine's Day meal. You can eat exactly what you want AND without being rushed. Another upside: no 18% added gratuity!
2. The price of greeting cards has skyrocketed. But Shoebox can always be counted on for a variety of cute cards with a 99 cent price tag. A cheaper card does not hold less sentiment! It's what you're adding to the card yourself that counts. OR, dare we say it, make your own card!
3. Boxed chocolate can run you upwards of $40. More if you're springing for a fancy brand like Godiva. A dozen roses run in the same price range. Why not select one or two gourmet chocolates, along with a single rose? Regardless if you give one or twelve, flowers are going to die. And your partner will appreciate your respect of his/her New Years Resolution to lose weight by only allowing them an indulgence of one piece of candy!
4. The bottom line - what is Valentine's Day supposed to be about? It's a day for showing loved ones how much they mean to you. With all of the modern technology that's designed to help us communicate, sometimes we still don't express the sentiments we should. Taking time out of your day to tell someone you love them doesn't have to cost a penny.
Have your own idea for saving money this Valentine's Day? Tell us about it!
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.
FAQ FRIDAY - 2/8/08
Q. I received a notice from the Internal Revenue Service (IRS) that says I did not report income from sales of stock? I owe a lot of money. What do I do?
A. First, stay calm. The IRS has a matching program with payors of income that are required to report that income to them. There are several circumstances where the IRS assessment may not be correct.
You may have missed reporting sale proceeds on a stock or mutual fund sale because you thought you had a loss and wouldn’t be required to report it. The IRS only gets information on the sales proceeds. They don’t know how much you paid for something. Research the cost basis and consider using a tax professional to make sure that nothing else was missed and that you properly respond to the notice. If you think you reported the amounts then you may have reported it on the wrong schedule or in a format that prevents their programs from matching up the information to what you reported.
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, stay calm. The IRS has a matching program with payors of income that are required to report that income to them. There are several circumstances where the IRS assessment may not be correct.
You may have missed reporting sale proceeds on a stock or mutual fund sale because you thought you had a loss and wouldn’t be required to report it. The IRS only gets information on the sales proceeds. They don’t know how much you paid for something. Research the cost basis and consider using a tax professional to make sure that nothing else was missed and that you properly respond to the notice. If you think you reported the amounts then you may have reported it on the wrong schedule or in a format that prevents their programs from matching up the information to what you reported.
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.
Thursday, February 7, 2008
THIS SATURDAY 2/9- "Living Rich by Spending Smart"
Did your New Year's Resolution involve saving more and spending less? Are you finding it to be harder than you imagined?
Then you have no excuse for not tuning into "Your Financial Choices" this Saturday at 9 a.m.
Then you have no excuse for not tuning into "Your Financial Choices" this Saturday at 9 a.m.
We are very excited to have award-winning personal finance columninst, newly published author AND authority on controlling your spending Greg Karp joining us for Saturday's show!
Greg's "Spending Smart" newspaper column reaches millions of readers nationwide and offers sound advice on how to spend smarter. His book, Living Rich by Spending Smart offers even more expertise on how to "plug the leaks of wasteful spending and redirect hard-earned cash to what you truly care about."
Greg's "Spending Smart" newspaper column reaches millions of readers nationwide and offers sound advice on how to spend smarter. His book, Living Rich by Spending Smart offers even more expertise on how to "plug the leaks of wasteful spending and redirect hard-earned cash to what you truly care about."
Check out more about Greg and his writings at http://www.gregkarp.com/ His book is available at Barnes & Noble, Amazon.com and other booksellers.
Join us Saturday, February 9 at 9 a.m. on NEWS TALK AM 790 WAEB or listen online at www.waeb.com
As always, we welcome your questions during the broadcast! Call 610-720-7900!
As always, we welcome your questions during the broadcast! Call 610-720-7900!
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.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Monday, February 4, 2008
FAQ Friday (on Monday - this week only!)
Due to technical issues we were unable to get our FAQ Friday posted until today...We will resume this Friday with our regular Friday posting of a Frequently Asked Question!
Q. Do I have to file a special form with my tax return when I have a nondeductible IRA?
A. The form to file when you have a nondeductible IRA is called a Form 8606. File this form when you make nondeductible contributions to an IRA or when you convert a traditional IRA to a ROTH IRA. You must also file this form when you take distributions from a nondeductible IRA or a ROTH IRA. While this form is only required when any of the above occur, filing each year to reflect the contribution amounts is a good idea. It is a very easy way to keep track of those dollars that will not be taxed in the future.
Have a great week!
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.
Q. Do I have to file a special form with my tax return when I have a nondeductible IRA?
A. The form to file when you have a nondeductible IRA is called a Form 8606. File this form when you make nondeductible contributions to an IRA or when you convert a traditional IRA to a ROTH IRA. You must also file this form when you take distributions from a nondeductible IRA or a ROTH IRA. While this form is only required when any of the above occur, filing each year to reflect the contribution amounts is a good idea. It is a very easy way to keep track of those dollars that will not be taxed in the future.
Have a great week!
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 25, 2008
FAQ FRIDAY!
FAQ: I gift money to my son to pay his daughter’s college education costs. Is there a way to make these gifts so that no one has to pay taxes?
Actually, there is an annual exemption of $12,000 in 2007 for not reporting gifts. If you gift more than that, you would have to file a gift tax return to show that you are using some of your lifetime gifting amount of $1,000,000. You and your spouse can both gift $12,000 without using any of your lifetime amount. If you make gifts directly to an educational institution, it won’t count against your gifting amount.
You can also set up a college savings account for your granddaughter. You are allowed to gift up to 5 years of gifts in one year. You would still file a gift tax return but you elect to count it over the 5 year period and you don’t eat into that lifetime exemption amount (unless you die before 5 years.) This removes the assets from your estate and keeps it out of your son’s assets for reporting for financial aid. You control the beneficiary designation as well.
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.
Actually, there is an annual exemption of $12,000 in 2007 for not reporting gifts. If you gift more than that, you would have to file a gift tax return to show that you are using some of your lifetime gifting amount of $1,000,000. You and your spouse can both gift $12,000 without using any of your lifetime amount. If you make gifts directly to an educational institution, it won’t count against your gifting amount.
You can also set up a college savings account for your granddaughter. You are allowed to gift up to 5 years of gifts in one year. You would still file a gift tax return but you elect to count it over the 5 year period and you don’t eat into that lifetime exemption amount (unless you die before 5 years.) This removes the assets from your estate and keeps it out of your son’s assets for reporting for financial aid. You control the beneficiary designation as well.
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.
Thursday, January 24, 2008
This Saturday 1/26 - Planning for Retirement!
Join us this Saturday on "Your Financial Choices" for an in-depth conversation on everything you need to know about retirement planning!Thomas Riddle, CPA, CFP® and President of Valley National Financial Advisors will be here to discuss 5 KEY FACTS for retirement-minded individuals; with a special focus on how to replace the payroll earnings stream in retirement.
We will cover important topics regarding retirement such as:
- Income Taxes
- Investment selection
- Risk tolerance
- Cash flow
- Estate Planning
- Most importantly, we cover these factors as they pertain to your specific and unique situation...try us, we've seen them all!
Have a question about your retirement planning, or maybe you haven't even started yet?
Tune in Saturday at 9:00 a.m. on NEWS TALK AM 790 WAEB.
Listen online at www.WAEB.com
Better yet, call us with a question at 610-720-7900
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 18, 2008
This Saturday 1/19 on "Your Financial Choices" - Pages 1 and 2 of the tax return!
This Saturday's show will be a continuance of last week where we took a look at Page 1 of the tax return...tomorrow we will also be introducing Page 2 with a special emphasis on credits.
No guest has been scheduled in order to allow for as many caller questions as possible, so take a look at your taxes, get your questions ready, and call in tomorrow!
"YOUR FINANCIAL CHOICES" airs Saturdays at 9:00 a.m. (following the news) on NEWS TALK AM 790 WAEB. You can listen online at www.WAEB.com
Caller hotline: 610-720-7900
Callers, please consider giving us your contact information so we may add you to our mailing list. You will receive a bi-monthly issue of the "Your Financial Choices" newsletter and other valuable information! We will never share your information with a third party.
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.
No guest has been scheduled in order to allow for as many caller questions as possible, so take a look at your taxes, get your questions ready, and call in tomorrow!
"YOUR FINANCIAL CHOICES" airs Saturdays at 9:00 a.m. (following the news) on NEWS TALK AM 790 WAEB. You can listen online at www.WAEB.com
Caller hotline: 610-720-7900
Callers, please consider giving us your contact information so we may add you to our mailing list. You will receive a bi-monthly issue of the "Your Financial Choices" newsletter and other valuable information! We will never share your information with a third party.
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.
Wednesday, January 16, 2008
There's Still Time to Make Your Financial Resolutions for 2008!
Some New Year's Resolutions...
· Do unto others as you would have them do unto you. It’s sometimes hard to stay objective here but it’s a goal. Example: Let someone merge in front of you on the highway. Or, be polite if you would like people to be polite to you.
· A penny saved is a penny earned. – Benjamin Franklin Example: Let’s stay conscious when we’re spending. Most of us just don’t pay attention. Those that do tend to have a lot more money.
· If you have a question to ask, ask it. Have no fear. Example: “What is a mutual fund?” or “What is the AMT and what is this “patch” everyone is talking about?” (continued on next page)
· I will put money into a retirement account. I will understand what my options are. I will understand if I am losing free money every year that my employer is trying to give me.
· I will pay off my credit cards before I spend money on non-necessities, and I will understand what non-necessities are!
· I will listen to “YOUR FINANCIAL CHOICES” and call in with a question!
HAPPY NEW YEAR!
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.
· Do unto others as you would have them do unto you. It’s sometimes hard to stay objective here but it’s a goal. Example: Let someone merge in front of you on the highway. Or, be polite if you would like people to be polite to you.
· A penny saved is a penny earned. – Benjamin Franklin Example: Let’s stay conscious when we’re spending. Most of us just don’t pay attention. Those that do tend to have a lot more money.
· If you have a question to ask, ask it. Have no fear. Example: “What is a mutual fund?” or “What is the AMT and what is this “patch” everyone is talking about?” (continued on next page)
· I will put money into a retirement account. I will understand what my options are. I will understand if I am losing free money every year that my employer is trying to give me.
· I will pay off my credit cards before I spend money on non-necessities, and I will understand what non-necessities are!
· I will listen to “YOUR FINANCIAL CHOICES” and call in with a question!
HAPPY NEW YEAR!
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.
Thursday, January 10, 2008
This Saturday 1/12: Page 1 of the Tax Return!
It's that time of year again....
Be sure to tune in this Saturday, January 12 for a review of Page 1 of the tax return!
(NEWS TALK AM 790 WAEB, or listen online at http://www.waeb.com/)
We'll look at some of the nuances behind the most familiar line items on the Federal Form 1040 as well as several tax reduction success stories.
Our guest will be YOU, the listening audience! We want to take as many callers as our time slot allows, so get your questions ready and call 610-720-7900
April 15th will be here before you know it!
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.
Be sure to tune in this Saturday, January 12 for a review of Page 1 of the tax return!
(NEWS TALK AM 790 WAEB, or listen online at http://www.waeb.com/)
We'll look at some of the nuances behind the most familiar line items on the Federal Form 1040 as well as several tax reduction success stories.
Our guest will be YOU, the listening audience! We want to take as many callers as our time slot allows, so get your questions ready and call 610-720-7900
April 15th will be here before you know it!
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.
Save Money Before It's Too Late
Did you know...
If your employer offers a flexible spending account, you may set aside pre-tax dollars for medical expenses and qualified dependent care expenses. In this way, you save money on the taxes that otherwise would have been levied on those dollars.
You may qualify for a retirement savers credit on your tax return if your adjusted gross income is within the limits AND you contribute to some kind of retirement account. If you qualify and you aren’t putting money into a retirement account, you are losing money.
Did you know that if you have employer stock in your 401k retirement account, that you may be entitled to special tax treatment when you roll it over to an IRA that may save you lots of taxes? It also applies to ESOP plans.
You can donate appreciated stock that you have held more than a year to your favorite charity and not recognize the gain on the stock.
One of your most important assets is your health.
There are many, many choices that you have everyday in your life that affect your financial life. Understand your choices while you can take ACTION versus REACTION.
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.
If your employer offers a flexible spending account, you may set aside pre-tax dollars for medical expenses and qualified dependent care expenses. In this way, you save money on the taxes that otherwise would have been levied on those dollars.
You may qualify for a retirement savers credit on your tax return if your adjusted gross income is within the limits AND you contribute to some kind of retirement account. If you qualify and you aren’t putting money into a retirement account, you are losing money.
Did you know that if you have employer stock in your 401k retirement account, that you may be entitled to special tax treatment when you roll it over to an IRA that may save you lots of taxes? It also applies to ESOP plans.
You can donate appreciated stock that you have held more than a year to your favorite charity and not recognize the gain on the stock.
One of your most important assets is your health.
There are many, many choices that you have everyday in your life that affect your financial life. Understand your choices while you can take ACTION versus REACTION.
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, January 7, 2008
"Learning with Laurie" - The official blog of "Your Financial Choices" on NEWS TALK AM 790 WAEB Saturday mornings at 9
Welcome to Learning With Laurie! My goal is to provide you with the information you need to make educated financial choices.
Currently updating, check back soon!
Listen to "Your Financial Choices" on NEWS TALK AM 790 WAEB on Saturday mornings at 9
Listen online at www.waeb.com
Currently updating, check back soon!
Listen to "Your Financial Choices" on NEWS TALK AM 790 WAEB on Saturday mornings at 9
Listen online at www.waeb.com
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