For most of us, during our working years we give little thought to paying taxes due on income, other than knowing that a lot of our gross pay disappears because of this. In fact our employer has set up a system to withhold what we owe automatically, so we don’t have to make the payments ourselves. So what happens when a retiree leaves the workforce and the system that has been set up to pay taxes on any income received?...
...To All a Good Night
Congress Makes “Permanent” the Qualified Charitable Distribution from IRAs
With the passage of the Protecting Americans from Tax Hikes (PATH) Act of 2015, Congress once again retroactively reinstated many of the tax extenders that were renewed and then expired at the end of 2014. Michael Kitces does a good job of highlighting the major points here. One major change from previous year’s legislation regarding extenders is that this Act makes most of these provisions permanent, meaning that next year at this time taxpayers won’t be put in limbo waiting to see if Congress will approve them for another year....
Maxing Out Your 2014 Retirement Savings
During this past tax season, I talked to a number of people who were shocked to discover they ended up owing more than they expected to for the year. In every case, part of the reason why they ended up owing was because they had not taken full advantage of potential retirement savings that could have reduced...