March 2024 Newsletter

March

• HOT TOPIC: Can Productivity Keep Driving the U.S. Economy?

  This article looks at the importance of productivity to the U.S. economy, possible contributing factors to the recent surge, and the prospects for an extended period of strong productivity growth.

• Key Retirement and Tax Numbers for 2024

  This article presents the IRS’ cost-of-living adjustments for 2024 that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts.

• How Savers and Spenders Can Meet in the Middle

  Couples who have opposite philosophies regarding saving and spending often have trouble finding common ground. This article offers some tips to learn to work with financial differences.

• The Federal Reserve’s Key Meeting Dates in 2024

  This article outlines the Federal Reserve’s three main objectives and provides the meeting schedule of the Federal Open Market Committee.

• Roth 401(k) News: Is It Time to Rethink How You Save for Retirement?

  High-income participants will not be allowed to make pre-tax catch-up contributions to a traditional 401(k) or similar plan starting in 2026, but they will be able to contribute to a workplace Roth.

• Can Your Personality Influence Your Portfolio? New Research Points to Yes

  The findings of two recent academic studies may offer insight into how investors can make more fruitful financial decisions.

Toney's Tax Takeaway - February 25, 2024 Newsletter

In this issue:

• Assets Transferred Before or After Death?
• Why Are Tax Refunds Shrinking?
• What To Do Before Forming an LLC
• Social Security Benefits and Location, Location, Location

Assets Transferred Before or After Death? Are you thinking of transferring ownership of assets to your children or others while you’re still alive? Don’t create a potential tax trap for the recipients of your generosity by ignoring the advantage of the “Step-Up” basis.

Economic Substance Doctrine

 I'm coming across more and more "tax strategies" that are actually just "tax fraud." Usually, these strategies implement a complicated or convoluted entity structure in order to lessen or avoid taxes altogether. These are not legal, and the reason is the Economic Substance Doctrine.  (View More >>)

LLC Tax Misconceptions : What You Really Need to Know

 In the digital age, where social media doubles as a hub for financial advice, misconceptions about taxes and business structures are rampant. One prevalent myth is the notion that simply forming a Limited Liability Company (LLC) unlocks a treasure trove of previously unavailable tax deductions. Let's set the record straight.  (View More >>)

February 2024 Newsletter

 February

• HOT TOPIC: Tax Season News and Survival Tips

  Taxpayers may want to be aware of important updates as they prepare to file their 2023 federal returns. This article includes information, filing tips, and last-minute opportunities for tax savings.

• A New Year, A New Opportunity to Save with a 529 Plan

  This article explains how a 529 plan can help a family save for college, including recent changes that have made these plans more flexible.

• Don’t Forget About Credit When Planning for Retirement

  Credit may not be at the top of the list when it comes to retirement, but good credit can make a big difference for retirees. This article looks at some key factors that lenders consider.

• Do You Have These Key Estate Planning Documents?

  This article provides an overview of four estate planning documents that almost everyone should have: a durable power of attorney, a medical directive, a will, and a letter of instruction.

• Debit or Credit — What’s the Difference?

  This article explains why it may be better to use a credit card for certain transactions, as long as the bill is paid on time to avoid interest charges.

• Small Businesses Could Face Borrowing Challenges

  Despite tougher lending conditions and higher interest costs, many people who need capital for business purposes may need to borrow money. This article discusses some common financing options.

SECURE 2.0 Makes It Easier to Give and Receive

 SECURE 2.0 Act 

They say it’s better to give than to receive, but doing both while reducing your income tax liability may be appealing. The SECURE 2.0 Act, included in the federal spending bill passed in late 2022, created two new giving opportunities that could do just that. 

The new provision modifies the rules for qualified charitable distributions (QCDs), which allow a taxpayer who is age 70½ or older to contribute up to $100,000 annually — indexed for inflation — from a traditional IRA to a qualified public charity. The limit is $105,000 in 2024. While the contribution is not tax-deductible, the distribution — which would normally be subject to ordinary income tax — is not taxable. And the QCD can satisfy all or part of your required minimum distribution, which might otherwise increase your taxable income.

(Read more)

January 2024 Newsletter Topics

 Click on one of the newsletter topics below to read the article in its entirety.

Newsletters 

• Bear Market Emotions: Strategy vs. Reaction

  Staying disciplined in building a well-constructed portfolio over time can help carry investors through the market’s rough spots.

• The Inflation Experience is Painful – and Personal

  This article discusses consumer price index categories, how they’re weighted, and the top drivers of inflation over the past year.

• Are You Eligible for Any of These College-Related Federal Tax Benefits?

  College students and their parents need all the help they can get when paying for college or repaying student loans. This article explains three federal tax benefits that could take some of the sting out of expensive college costs.

• Much Ado About RMDs

  This article provides an overview of the changes the SECURE 2.0 Act made and a brief explanation of how to calculate required minimum distributions from tax-advantaged retirement accounts.

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