retirement - Linkenheimer LLP CPAs & Advisors

April 1 Required Minimum Distributions Deadline Approaching

Individuals who attained age 70 1/2 in 2015 must begin taking Required Minimum Distributions (RMDs) from their traditional IRAs by 4/1/16. Qualified retirement plan participants (e.g., 401(k) participants) also must begin taking RMDs if they reached age 70 1/2 or retired in 2015, whichever came later (except for 5% owners, who are subject to the IRA rules). Note that a qualified plan may require all employees (including non-5% owners) to take RMDs by April 1 of the year following the year the employee attains age 70 1/2. If you have any questions about the deadlines or RMDs, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:05:14+00:00March 29th, 2016|ira, retirement|0 Comments

Treasury Launches myRAs Nationwide

With the initial pilot phase of the program concluded, the Treasury has announced that myRAs (my Retirement Accounts) are now available nationwide. A myRA is a Roth IRA with Roth IRA annual contribution limits ($5,500 for 2015, $6,500 if age 50 by 12/31/15) and income eligibility limits [i.e., available to those with annual taxable income of less than $131,000 (individuals) or $193,000 (couples) in 2015]. Key features include the ability to open an account and contribute small amounts through payroll direct deposits, bank drafts, or tax refund direct deposits; no fees; balances backed by the U.S. Treasury; and account portability. People can get information and sign up for an account at myRA.gov . If you have any questions, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:05:21+00:00November 7th, 2015|retirement|0 Comments

12 Planning Tips for Social Security Benefits

Article originally written by Theodore J. Sarenski, CPA/PFS on Nov 04, 2014, posted to AICPA

Helping clients plan for Social Security benefits may involve a lot of information gathering and research, but doing so could save them a heap of headaches and a lot of money. Here are 12 planning tips that stand out to me as potential opportunities. These can provide great relief and keep your clients out of the danger zone.

If a person is past their full retirement age (age 66) and is submitting the initial application for Social Security retirement benefits, be sure to claim the allowed six months of retroactive benefits. One important question to consider is if your clients should start full retirement age at age 66 or wait until age 70. Life expectancy data shows that a person who retires at age 66 will live until 86.2, and a person who retires at age 70 will live until he or she is 87. With this in mind, I suggest waiting until age 70 to begin receiving benefits. Keep in mind there is an exception; the break-even point is age 81, so if your family history shows that most members do […]

By Linkenheimer LLP|2020-09-03T20:05:43+00:00November 6th, 2014|retirement, social security|0 Comments

You Can Unwind Roth IRA Conversion Before October 15, 2014

The market has generally been up since 2013, but if the value of your IRA has declined since your 2013 conversion date, or if your cash situation has changed significantly since you decided to convert, you can “recharacterize” the conversion transaction and avoid the tax. Generally speaking, you can unwind the conversion with a trustee-to-trustee transfer from the Roth back to a traditional IRA no later than 10/15/14. If you have already filed your 2013 return, you will need to amend.

Please call us if you have questions.

By Linkenheimer LLP|2020-09-03T20:05:45+00:00October 7th, 2014|ira, retirement, roth ira|0 Comments

Here is a list of 10 deductions individual taxpayers may overlook

Now that all the 2011 tax deadlines have passed, it is a perfect time to start planning for the next tax season.

Here is a list of 10 deductions individual taxpayers may overlook provided by Bankrate.com:

Additional charitable gifts – everyone knows the donation itself is a deduction, but did you know certain expenses are deductible as well? For example, you could be reimbursed charitable miles at $0.14 per mile, the cost of any supplies bought for the group, and if a uniform is required, you could deduct the cost of that uniform and its cleaning bills.
Moving expenses – there are many moving expenses you can deduct when you relocate. For example, even your first relocation after college to start a new job is deductible.
Job hunting costs – costs related to searching for a new job in your current profession can be […]

By Linkenheimer LLP|2020-09-03T20:05:57+00:00November 2nd, 2012|CPA, energy, Linkenheimer, moving expenses, retirement, Santa Rosa, savings, tax, tax deductions, taxpayers|0 Comments