TAX PLANNING & PREPARATION

Great idea, but the IRS is one step ahead of you. That’s why we have the Required Minimum Distribution (RMD).  Your RMD will begin at a specific age, depending on your date of birth, and is the government’s way of ensuring that the money that has gone into your IRA/401k/403b tax free, and has now grown tax free, is taxed.  Your RMD is a percentage determined by the IRS applied to the value of your tax-deferred account balance at the end of the previous year. 

The traditional tax preparation process has primarily been based on keeping taxes as low as possible in the current tax year without considering the impact it’d have on your lifetime taxes.  By kicking the tax can down the road, we need to ask the question if that’s wise or not.  Your tax life can’t be just tax preparation, looking back at what has already occurred and trying to best put the numbers together.  This should be the last step.  Step one should be the actual tax plan: from a high level, what our strategy should be.  Step two is tax management: now that we have our strategy for the year, how do we actually implement it and adapt it to the unforeseen changes throughout the year.  Step three is tax preparation, which really should just be an audit of what was our plan and how closely were we able to stick to it.

Yes, as a full service tax firm we not only offer tax preparation services but also the more critical steps to a family’s tax life which would be tax planning and tax management. 

This is an additional charge added to your Medicare Part B (medical insurance) and Part D (prescription drug coverage) premiums if your income exceeds certain thresholds. The Social Security Administration determines IRMAA based on your Modified Adjusted Gross Income (MAGI) from two years prior.

A 3.8% surtax on certain investment income for individuals, estates, and trusts with income above specified thresholds ($200,000 for individuals, $250,000 for joint filers). It applies to the lesser of your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds the threshold.

The 10-year rule for inherited IRAs requires most non-spouse beneficiaries to fully withdraw (and pay taxes on) all assets from the inherited IRA within 10 years of the original account holder’s death.

Yes, you will still need to pull all of the funds within the account out by the end of the 10 years, but since tax has already been paid on the contributions of those funds, no tax will be applied when funds are distributed from the account. 

In order to develop and execute a full tax strategy, we must understand the other elements of your financial picture. We have you imagine that we are laying out each puzzle piece of your financial life and then working with you to fit them together in the most efficient way possible. 

Yes, taking your Social Security and/or Pension benefits can be significantly impacted depending on the timing and what other sources of income you’re receiving at the same time.  As an example, more of your Social Security benefits will be taxed after certain income ranges depending on your tax filing status.  

Yes, we understand that a closely held business can be a significant asset for a family and thus we must consider the personal tax consequences for how the business is set up, how income is recognized, and in the event of a transaction.