Category: Personal Finance
IRS announces 2018 pension plan limitations; 401(k) contribution limit increases to $18,500 for 2018
The IRS recently announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. Highlights of Changes for 2018: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans,...
Understanding the 72t distribution (SOSEPP)
A 72t distribution is shorthand for the Internal Revenue Code (IRC) Section 72, part t. The most popular provision of this code section is known as a Series of Substantially Equal Periodic Payments (SOSEPP) and is a method by which...
Michigan’s minimum wage to increase on January 1
On January 1, Michigan's minimum wage will increase to $9.25 per hour, up from $8.90 per hour. The increase is the third and final scheduled increase approved in 2014 by the Legislature. They started in 2016, when the minimum wage...
Guest Author Joseph J. Lezotte, CFP®, AIF®: Is a qualified charitable distribution right for you?
If you’re a charitably-minded individual at an age that requires you to take a required minimum distribution from your IRA and you don’t need the full amount to support you, a qualified charitable distribution (QCD) may be a good option....
IRS announces 2018 pension plan limitations
The Internal Revenue Service issued the annual cost of living adjustments Thursday for 401(k) contributions, pension plans and other retirement-related matters. The contribution limit for workers who are enrolled in 401(k), 403(b), most 457 plans, and the federal government’s Thrift...
Gifts to charity: Six facts about written acknowledgements
Throughout the year, many taxpayers contribute money or gifts to qualified organizations eligible to receive tax-deductible charitable contributions. Taxpayers who plan to claim a charitable deduction on their tax return must do two things: Have a bank record or written...
IRS will not accept returns without health coverage for 2018 filing season
The IRS recently announced that it will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act for the upcoming 2018 filing season. The return must indicate whether the...
District Court denies IRS maximum FBAR penalty
Arthur Bedrosian, chief executive officer of Lannett Company, Inc. (LCI), has prevailed in his lawsuit with the IRS. Bedrosian filed a lawsuit against the IRS, after the IRS claimed Bedrosian failed to properly and timely report a foreign bank account,...
IRS tax relief for those affected by recent hurricanes
The IRS is providing relief to those affected by the recent hurricanes. Here's a summary on how. How is the IRS providing relief to those affected by Hurricane Irma and Harvey? If an individual or business was affected and had...
Failure to substantiate charitable contributions could cost you
Substantiation requirements for charitable contributions vary depending on the size and nature of the donations—and taxpayers should be prepared with adequate documentation. While a recent article in Forbes pokes fun at substantiating charitable contributions, it reminds us that the IRS...