Leaving a job? You may want to roll over funds in your former employer’s 401(k) plan to an IRA. But there’s a tax trap for the unwary. You can dodge it by arranging for a direct trustee-to-trustee transfer from the plan to your IRA. Why a direct transfer? If you receive a 401(k) plan check […]

The IRS has issued a warning about the rising threat of impersonation scams targeting older adults. In these scams, criminals pretend to be government officials with the goal of stealing sensitive personal information and money. They may pose as representatives from the IRS or other agencies and try to extract information through phone calls, emails […]

If your child is disabled, consider setting up a tax-advantaged Achieving a Better Life Experience (ABLE) account. Currently, ABLE accounts allow people who became disabled before age 26 to save money without harming their eligibility to receive Medicaid or Social Security benefits. Account owners, family members and friends can contribute to an individual’s ABLE account, […]

The second quarter estimated tax payment deadline was June 17.  If you missed that deadline you should make your payment as soon as possible to minimize possible penalties. If you don’t currently make estimated payments, should you? In general, individuals should make payments if they expect to have a tax liability of $1,000 or more […]

The Joint Committee on Taxation has released a report titled “Overview of the Federal Tax System as in Effect for 2024” (JCX-26-24). It breaks down the current system into four main elements: 1) an income tax on individuals, estates, trusts and corporations (which consists of both a “regular” income tax and, in certain cases, an […]

The IRS is reminding taxpayers that they have options if they can’t pay their tax bills in full. The tax agency advises these individuals to file their returns by the deadline, pay what they can and explore payment options for the balances. The IRS offers short- and long-term plans. The former is offered if the […]