If you have set up a Health Savings Account with a high deductible insurance plan, after you turn 65 the HSA can actually take on the characteristics of a traditional IRA. You can withdraw money from the plan to pay for anything and the withdrawal is taxable, but there are no longer any penalties for using the money for non-medical expenses. See this article in the Wall Street Journal by Peter S. Green for more details: http://online.wsj.com/articles/health-savings-accounts-can-double-as-shadow-iras-1401481345 In this situation it would be wise to treat the HSA as more of a supplemental IRA – there may be more advantages to continue to pay for medical expenses tax free than pay tax on the distributions. You need to look at your situation and see what works best for you. Also remember that your penalty free start time goes from 59 1/2 to 65 with the HSA. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Financial Musings: Millennials squeezed out of buying a home
Since the real estate crash in 2008 it has been harder for people under 35 to buy a home in a lot of desirable areas. See this article in CNN Money by Les Christie: http://money.cnn.com/2014/06/01/real_estate/millennials-squeezed-out/index.html In addition to student loan debt making it harder to qualify, it is harder to get the twenty percent down payment which will prevent having to pay for private mortgage insurance (PMI) and adding hundreds of dollars to a monthly mortgage payment. There are some plans available for this group, but you have to do your research and shop around. Using a mortgage broker that can shop multiple lenders and find the best deal makes a lot of sense in this situation. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a Burbank CPA: Can the Profession Control Bad Preparers?
In light of the final ruling in the “Loving” case, which doesn’t give the IRS authority to regulate paid income tax preparers (except for preparers governed by circular 230, like Enrolled Agents, CPAs and others), more “bad” tax preparers have been surfacing who take advantage of taxpayers and give all preparers a bad name. See this article in AccountingToday by Jeff Stimpson as he questions how well the profession can help shut down these preparers: http://www.accountingtoday.com/news/tax_essentials/can-the-profession-control-bad-preparers-70803-1.html Since the courts have deemed the regulation issue DOA, except for voluntary compliance (this is working so well already) and the profession itself has all ten fingers in a dyke with twice as many holes, the only hope seems to be legislative (perhaps at the state level, as the climate isn’t right at this time for Congress to change circular 230 and let the IRS regulate tax preparation). As this article says, hairdressers and plumbers need a state license; shouldn’t tax preparers need one as well? For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa