Category: Personal Finance

Tax-free rollover from 529 plans to Roth IRAs will be allowed starting in 2024

In December 2022, Congress passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much-anticipated and long-awaited retirement bill known as SECURE Act 2.0. One of the provisions of SECURE Act 2.0 that has grabbed a disproportionate...

“Representative payee” can help Social Security or SSI recipient manage their benefits

[caption id="attachment_8264" align="alignright" width="300"] A senior woman with her daughter online purchasing together[/caption] Many Social Security recipients are capable of managing their own affairs, but not all can.  If someone you love needs assistance with their federal government benefits, the...

Annual Michigan Individual Income Tax System Maintenance Begins on Thursday

FYI: Effective after 5 p.m. on Thursday, Dec. 8, the state Treasury Department will suspend processing state individual income tax refunds due to annual tax processing system upgrades required for the upcoming 2023 tax filing season. Individuals will be able...

‘Tis the season: Real estate gifts must be appraised

If your holiday list this year includes gifts of real estate, the gifts must be appraised and made at their current fair market value per the IRS.  A detailed appraisal by a professional appraiser, who is thoroughly trained in the...

Guest Author Robert Steinberg of Blue Chip Partners: What you need to know about capital gains distributions

One of the most significant downsides of investing in mutual funds in non-retirement accounts is that they are required to make annual distributions of virtually all capital gains recognized during that year. This article highlights potential issues and steps that...

Check tax withholding amount now to prevent a big surprise in April

The Internal Revenue Service today urged taxpayers to check their tax withholding at Tax Withholding Estimator while there's time left in 2022 to benefit from any necessary changes.  An adjustment made now will help people avoid a big surprise, such...

2023 retirement contribution limit increases announced

The IRS has announced new contribution limit increases fro both 401(k) and IRA retirement savings plans: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500,...

New clarifications announced for hardship distributions from retirement plans

A retirement plan may, but is not required to, provide for hardship distributions. Many plans that provide for elective deferrals provide for hardship distributions. Thus, 401(k) plans, 403(b) plans, and 457(b) plans may permit hardship distributions. If a 401(k) plan...

Student loan debt forgiveness application is now open

The federal student loan debt forgiveness application is now open and must be completed by eligible borrowers by Dec. 31, 2023 to be considered for the program. The debt relief applies only to student loans obtained before June 30, 2022...

Standard business mileage rates going up July 1

In recognition of recent gasoline price increases, the IRS will raise the standard mileage rate for business use to 62.5 cents, up 4.5 cents from the previous rate established on January 1, 2022.  The new rate goes into effect on July...