Archive - May 2010

1
Roth Conversion Analysis – Make Sure You Get the Tax Right
2
The Two Type of Financial Forecasters
3
Your Family’s Maximum Retirement Benefit
4
Common Mistakes in Selecting and Monitoring Investment Options
5
Your Appeal Rights at the IRS

Roth Conversion Analysis – Make Sure You Get the Tax Right

Chevrolet-conversion-vanThere are almost as many ways to perform the analysis on Roth IRA conversions as there are reality TV shows about celebrity brat children these days… The point of this article is to make certain that any calculation you’re doing with regard to a Roth Conversion treats the tax appropriately. In reviewing whether or not a Roth IRA conversion in 2010 makes sense and furthermore whether you should spread the tax over the next two years, you need to consider what the tax cost is for a conversion in 2010, weighed against the costs you’ll experience if you spread the… Read More

The Two Type of Financial Forecasters

About once a week a client asks me about the latest prognostication from some famous so called “financial expert/alarmist.” They are either predicting the demise of the world as we know it or predicting a triple digit increase in the stock market. Maybe I am exaggerating, just a little, but we’ve all experienced those who think they can forecast the future and lead us to “Financial Paradise.” I remind my clients of two things with regard to these “miraculous forecasters.” The first is that most of the TV hosts, radio shows, magazines, and financial authors are in the business of …

Read More

Your Family’s Maximum Retirement Benefit

When a worker is receiving retirement benefits and/or members of his family are also receiving benefits based upon the retirement benefits, such as via spousal benefits, benefits for children, or other family members benefits, there is a maximum amount of benefit that can be distributed in total. (There is a separate maximum benefit computation for disability benefits, which we’ll cover in another article.)
How the Family Maximum Benefit is Computed

When computing the Family Maximum Benefit (FMB), the Social Security Administration falls back to it’s old habits of using a very convoluted formula, similar to the formula for computing the …

Read More

Common Mistakes in Selecting and Monitoring Investment Options

One of the primary responsibilities of operating a retirement plan is the selection and monitoring of the investment options. Unfortunately there is great diversity in how well these processes are executed.

Plan sponsor does not understand the fiduciary responsibilities of selecting and monitoring.

  • Result: If plan sponsors do not know their duties, they will most likely fail to carry them out, which would be a fiduciary breach. The fiduciary duty is very high. Donovan v. Bierwirth, 680 F.2d 263 (2nd Cir. 1982), cert denied, 459 U.S. 1069 (1982) (given that a fiduciary’s duties are the highest known to the law,
Read More

Your Appeal Rights at the IRS

an appealIf you have received a result from an IRS examination that requires an adjustment to your tax liability and you don’t agree with the result, you have certain rights to appeal – your opportunity to state your case and perhaps get an overturn of the result of your examination. (It’s always possible!)

Facts About Your Appeal Rights

The IRS has put together a list of seven facts that they want you to be aware of with regard to your appeal rights (Tax Tip 2010-65):
  1. When the IRS makes an adjustment to your tax return, you will receive a report or
Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login