Here is a list of six different types of retirement income and how each is taxed. See details on the list in this post from Kiplinger by Sandra Block: http://www.kiplinger.com/article/taxes/T055-C000-S002-how-6-types-of-retirement-income-are-taxed.html I think a key here is that there is only one income vehicle that is totally tax free and that is the Roth IRA (although some qualified plans have a Roth component in them) – you forgo an upfront tax deduction to get tax free income if you hold the account until you are 59 1/2 and have it for at least five years. Just think; you never pay any income tax on this account! Now that is an awesome deal. 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: CPAs Sue IRS over PTIN Fees
If you are a CPA, Enrolled Agent or other paid tax preparer, every year from October through December you are required to renew your Preparer Tax Identification Number with the IRS to be allowed to prepare returns for the next year. You are also required to pay a fee of around $65 at the same time to said IRS. With the IRS being rebuffed in court regarding requiring the Registered Tax Return Preparer designation of all preparers (along with required license and continuing education fees), a group of CPA have filed a suit that says the IRS doesn’t have the authority to levy the PTIN fee and requesting all fees from 2010 be refunded to preparers. See this article in Accounting Today by Michael Cohn for the details: http://www.accountingtoday.com/news/legal-watch/cpas-sue-irs-over-ptin-fees-71919-1.html Before the court ruling I would have said ‘good luck with that lawsuit’, but now I wonder how it will turn out. As more details come to light, I will let you know. 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
Musings of a Burbank CPA: Retirement-saving changes you should keep an eye on
The new federal budget proposed by President Obama has some retirement plan proposed changes that people should be aware of. Nothing has gotten farther than the proposed stage yet (and with this Congress, I think passage is unlikely), but see this article in the San Jose Mercury News written by Janet Kidd Stewart of the Chicago Tribune for a list of the major potential changes: http://www.mercurynews.com/business/ci_26477736/retirement-saving-changes-you-should-keep-an-eye The scary part is losing some IRA and 401K exclusions, as well as the potential of making Roth IRA accounts subject to the Required Minimum Distribution (RMD). But like I said, none of this is law yet, and the way things have moved in the past, we may all be retired before any of the budget items actually pass. 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