For families navigating the financial realities of disability, planning has often felt like walking a tightrope. Save too much money, and a loved one could lose access to essential public benefits. Spend too quickly, and long-term financial stability becomes harder to achieve. For years, many individuals with disabilities have faced an impossible choice between financial […]
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What is the Retirement Rule of $1 More?
Some limits and deadlines have wiggle room, but IRS rules, especially those regarding retirement rules, aren’t among them. The “retirement rule of $1 more” refers to the costly situations created when an increase, even by as much as $1, can trigger tax consequences or increase Medicare costs. Want to avoid crossing this expensive line? Here’s […]
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New York State’s Estate Tax Cliff: How to Keep Your Estate on Solid Ground
New York State residents shouldn’t overlook a crucial and potentially costly component of their estate planning: New York State’s estate tax cliff. If your estate falls within the $7 million to $14 million range, it is imperative to address this issue now—before it results in an unnecessary and substantial tax burden on your heirs. Understanding […]
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Social Security Administration Releases Final Rule Omitting Food from In-Kind Support and Maintenance Calculation for SSI
The most important takeaway from the Social Security Administration’s rule change is that any purchases of food for Supplemental Security Income recipients from Special Needs Trusts and families will not decrease the SSI payment. The new rule was approved on March 27 and effective September 30, 2024. This new ruling makes Special Needs Trusts (SNTs) […]
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What are the New IRA and Retirement Saving Rules for 2024?
If your New Year’s resolutions included increasing your retirement savings efforts in 2024, there are a few changes to rules about IRAs, 401(k)s, and even 529 College Savings Plans you’ll want to know about. Contribution limits for 2024 have gone up. Annual contributions for IRAS in 2024 are now $7,000, up from $6,500 in 2023. […]
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The IRS Offers Tax Prep Software – Free – Is it For You?
It’s been a long time coming, but next year, for the first time, some taxpayers will have a new filing option: a free tax prep software program created by the IRS and named “Direct File.” The roll-out will be slow. Direct File will be available only in thirteen states, including New York. Note that the […]
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SECURE 2.0 Opens Door for Qualified Longevity Annuity Contracts (“QLAC”)
Back in the spring, in a rare show of bipartisan action, the House and Senate passed a law intended to give Americans an incentive to save for retirement. The bill received over 400 votes in the House and over 80 in the Senate. The bill, dubbed SECURE 2.0, is a follow-up to the SECURE Act. […]
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IRS Raises Tax Brackets and Standard Deduction in Response to Inflation
In the largest automatic adjustment to the standard deduction since core features of the tax system were indexed to inflation in 1985, the IRS has increased key tax code parameters for 2023 to reflect high inflation rates. The top 37% top marginal tax rate will apply to individual income above $578,125 and married couples’ income […]
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IRS Waiving Late Filing Penalties
The IRS announced yesterday its waiving $1.2 billion in late-filing penalties for income tax returns, letting about 1.6 million taxpayers off the hook. What is behind this decision from an agency not known for forgiveness? From our perspective, the reason is less about caring for taxpayers and more about an organizational disaster. The IRS has […]
Continue reading…IRS Actuarial Tables Updated, Retirees Can Keep More in their IRAs
It has been 20 years since the IRS last updated its actuarial tables – the ones used to indicate how much taxpayers must take from their retirement accounts. For the first time in many years, retirees can keep more money in their tax-deferred accounts starting at age 72. The new tables reflect a longer lifespan, […]
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