Answers in Accounting and Tax

Whether you’re preparing your annual taxes, trying to minimize your tax liability, or preparing for an IRS audit, having a CPA or tax professional in your corner can drastically reduce the burden.
2 votes
Lindsey, If the mother had no other assets, there should be no Federal estate tax on this, and generally wouldn't be any state estate or inheritance tax either (if there was an attorney involved in settling the estate, he/she should be able to verify). However, ...(more)
0 votes
Peter Cacioppo Level 16
Use just a Solo 401k; use Fidelity's; no fees or annual costs besides 7.95 to make a stock purchase; they also have no fee, low internal cost mutual funds. Walk into a local Fidelity office and they will help you.
0 votes
Hello John from Fredericksburg, With regard to your questions about taking money out of your plan: Since you are age 70, you certainly should be able to withdraw any amount of money that you wish from your 401(k), without penalty. In fact the IRS is hoping ...(more)
2 votes
Herbert N Glass Level 18
Hi John, You have some good questions that I think many participants in qualified plans including 401(k) plans can benefit from hearing the answers. Regardless of what kind of qualified plan one may be in, the age 70.5 required distribution rules are ...(more)
0 votes
C, Trading in and out of the stock inside your 401(k) eliminates a powerful planning tool called Net Unrealized Appreciation (NUA). It allows favorable tax treatment of appreciated company stock rolled out of a 401(k). NUA is a complex deal that really ...(more)
1 vote
Tunc Tanin Level 10
I remember talking to 2 prospects after Enron collapsed, they were following a similiar strategy and they lost most of their money. IF you think no one can take a company down watch the rogue trader. A single person took large bank on his own to be worthless ...(more)
3 votes
John Essigman Level 17
Qualified plans and IRA’s are generally tax neutral to the owner. If the company stock is inside your 401(k) these transactions are, for the most part, non-taxable events. Taxes usually do not apply until you take distributions, which are taxed as current ...(more)
2 votes
Joe Pitzl Level 3
Samuel - based on the info you provided, it seems that the Solo 401k will make the most sense. The formula for calculating the max profit-sharing contribution to your Solo 401k is the same as the SEP formula, but the 401k allows the additional employee ...(more)
2 votes
John Essigman Level 17
Hi Samuel, I generally agree with Jeremy. The larger question… what are you trying to accomplish? There are other alternatives if you are seeking to improve or maximize tax efficiency. These would include muni’s, income producing real estate, and ...(more)
1 vote
Samuel, There are several questions that all require detailed answers. The short answers are: 1) Yes, you can have both a Solo(k) and a SEP plan simultaneously; 2) No, you cannot exceed the $52,000 deferral cap with this approach; 3) The $17,500 employee ...(more)
0 votes
Tunc Tanin Level 10
The congress intended IRA's for retirement purposes, not as a piggy bank. The IRS may be able to waive the 10 percent early withdrawal fee if you ask them. I found them to be more willing to waive this type of penalty then others due to most financial ...(more)
0 votes
The others have provided good answers. If you and I were sitting down, the first question I would ask is: why are you doing this? That’s not a challenge, but it will determine my advice. If it’s to get a tax deduction on earned income, the regular ...(more)
0 votes
Tunc Tanin Level 10
You should look into a Roth IRA if you qualify. They work out better for people who are 65 and just starting out. Even if you can find a low fee option for your traditional IRA, you still have to start taking out RMD.'s when you turn 70.5. There are no ...(more)
0 votes
There are a lot of variables in regards to IRAs. First, you (or your spouse) must have earned income to contribute to an IRA. If you get a W-2 at the end of the year, you have earned income. Second, if you open a Traditional IRA you will most likely ...(more)
0 votes
Tunc Tanin Level 10
It is a taxable event however, it is possible you may not owe any income taxes on this even though you received a 1099. The 1099 is reportable as income on your tax return, however, if you are considered to be insolvent by the IRS, the 1099 is not included ...(more)
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