May 2014

23 May

IRS Announces New IRA Rollover Limitation

A Tax Court ruling raises eyebrows and leads to a decision that may affect you

What was once allowed is now prohibited. In 2008, an affluent New York City couple made a series of withdrawals and transfers among contributory IRAs, rollover IRAs and non-IRA investment accounts, all with the long-established 60-day deadline for tax-free IRA rollovers in mind. As esteemed tax attorney Alvan Bobrow and his wife withdrew and rolled over a series of five-figure sums within a six-month period, they assumed their actions were permissible under the Internal Revenue Code. In January 2014, a U.S. Tax Court judge ruled otherwise.1

16 May

Reduce Your Tax Burden with a SEP IRA Contribution

Today's post is more of a reminder than a clever trick. If you are self-employed or own a small business, you should make sure you're aware of the benefits of contributing to a SEP IRA.

For the 2014 tax year, the IRS has raised the SEP IRA contribution limit to $52,000, or 25% of your salary, whichever is smaller. Generally, those SEP IRA contributions can be deducted from your taxes.