Category: Retirement Planning

This is the second article in a multi-part series to address the impact of significant life transitions on tax planning. Click here for Part I. Earlier this year, Councilor, Buchanan & Mitchell (CBM) kicked off an article series about the impact of significant life transitions on tax planning. In Part I of the series, we covered getting married, divorce, having children and buying a home. In this second part of the series, we will address selling your home, starting a business and… Read more ›

The IRS has published new regulations relevant to taxpayers subject to the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. The final regs, which take effect in 2025, require many beneficiaries to take annual RMDs in the 10 years following the deceased’s death. SECURE Act Ended Stretch IRAs The genesis of the new regs dates back to the 2019 enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act. One of… Read more ›

Creating a comprehensive and actionable succession plan is rarely easy for business owners. It’s certainly a challenge for most contractors, who may find it difficult to step away from the day-to-day hustle and bustle of building to envision life without a hardhat. If all this sounds familiar, know that there are ways to go about succession planning in a slow, methodical manner that can make it relatively easier. In fact, it may strengthen the plan you eventually devise. Lay Down a… Read more ›

Reema Patel, CPA, CFP®, a partner at Councilor, Buchanan & Mitchell (CBM), and Stephanie Anderson, CFA, CFP®, CDFA®, a manager of financial planning and wealth management at CBM, are scheduled to present on effective retirement planning strategies for the Greater Washington Society of CPAs (GWSCPA). Their session, which will be offered virtually, is scheduled on Thursday, August 22 from 11 am to 12 pm EDT. Reema and Stephanie are both CERTIFIED FINANCIAL PLANNERSTM who collaborate with clients to pursue their… Read more ›

This is the first article in a multi-part series to address the impact of significant life transitions on tax planning. Click here for Part II. Although preparing your taxes can be a smooth process in some years, significant life transitions can be counted upon to complicate your tax situation eventually. This article won’t delve deeply into each transition—other articles on our website (e.g. regarding divorce) provide greater detail for each transition. But CBM would like to offer the following overview… Read more ›

For the third consecutive year, the IRS has published guidance that offers some relief to taxpayers covered by the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. But the IRS also indicated in Notice 2024-35 that forthcoming final regulations for the rule will apply for the purposes of determining RMDs from such accounts in 2025. Beneficiaries Face RMD Rule Changes The need for the latest guidance traces back to the 2019 enactment of… Read more ›

With the 2024 tax year right around the corner, there’s good news coming from the IRS. According to a recent announcement from the tax agency (Notice 2023-75), there will be increases to retirement plan contributions next year due to inflation adjustments. Here’s a rundown of some of the changes: Contributions to 401(k) and 403(b) Plans. Taxpayers will be able to contribute up to $23,000 in 2024, up from $22,500 in 2023. The catch-up contribution amount for those age 50 and… Read more ›

Summer isn’t just for barbeques and baseball. It’s also a good time to think about ways to cut your 2023 business tax bill. Here are four planning ideas for small business owners to consider, assuming there won’t be any changes to current federal tax laws at least through 2024. 1. Establish a Tax-Favored Retirement Plan If your business doesn’t already have a retirement plan, now might be the time to take the plunge. Current rules allow for significant annual deductible… Read more ›

Recent reports have raised anew concerns about the impending insolvency of the Social Security program, absent congressional action. Social Security reform has long been considered a “third rail” of American politics and understandably so — the options for heading off insolvency will inevitably cause pain for significant segments of the population. Yet some in Congress have stepped forward with proposals that aim to tackle the problem. The Impending Shortfall Social Security currently provides benefits to more than 66 million recipients. The Congressional… Read more ›

Are you retiring soon? Unsure of if you will have enough money to get by? Social Security is supposed to give you financial support when you are no longer earning an income of your own but its process can be confusing. If you’ve already started your benefits or found you have made a mistake, these solutions may help. Taxes and the age you start collecting Social Security benefits can all change how much you get from the government each month…. Read more ›