While the 2016 defined contribution plan limits for 401(k) plans remain unchanged as compared to 2015, participants should now give extra consideration to making additional after-tax contributions (if allowed by the plan) due to recent changes in tax regulations. Under IRS Notice 2014-54, the IRS has agreed that a plan participant can now directly roll over pre-tax account balances into a Traditional IRA account, and after-tax account balances into a Roth IRA account. What this means is that ... [Continue Reading]
Articles and resources related to Tax Planning.
Just before recessing for the holidays, the House and Senate passed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). President Obama signed the Act on December 18.The PATH Act does considerably more than the typical tax extenders legislation that has been seen in prior years. It makes permanent more than twenty key tax provisions, including many affecting individual taxpayers. It also extends and enhances other provisions. Taxpayers, both individuals and businesses, had ... [Continue Reading]
As a follow up to my July post about tax-related identity theft, an update about new safeguards the IRS is taking to address tax return fraud: IRS battles tax refund thieves with new plan. ... [Continue Reading]
We have received many inquiries as to the status of the Qualified Charitable Distribution (QCD) income tax provision for 2014 (the tax provision expired after December 31, 2013). It is widely expected that Congress will act to reinstate the provision retroactively for all of 2014, and in fact, bills currently making their way through the House and Senate would extend it for 2014 and 2015. However, it must be noted that Congress has not acted as of today and has a history of waiting until ... [Continue Reading]