The Social Security Administration (SSA) does not recognize traditional powers of attorney. To ensure a person of your choice can manage your Social Security benefits, contact the SSA and make an advance designation of a “representative payee.” This is especially important as we get older and things like dementia or Alzheimer’s become a possibility.
Investing – Where Do I Start?
People often ask: “What should I do first?” Here’s the order: No employer plan or no match? Start with Step 2. Above. Self-employed? Get a Solo 401(k) or Self-Employed Pension (SEP). No HSA? Go to Step 3. You can do some steps at the same time (for example: you can schedule HSA & employer plan contributions via payroll deductions over … Read More
What is a “Backdoor Roth”?
The rules say that if your income is over $150,000 per year ($236,000 joint), you cannot make a contribution to a Roth IRA. But do not let this stop you. Tell your financial advisor that you want to make a “backdoor Roth” contribution. This simply means that you make a NON-deductible contribution to a traditional IRA, then immediately convert it … Read More
Inherited Property
When you inherit real property (residence, rental property, land) STOP immediately and get a qualified appraisal on the land. When you inherit land, you receive the market value of the property as of the date of death. This value becomes your cost basis in the property. When you go to dispose of the property, either by sale or by 1031 … Read More
Tax-Saving Qualified Charitable Distributions (QCDs)
If you are over 70 ½ years old and looking to make a contribution to your favorite charity, you should consider a Qualified Charitable Distribution (QCD) from your IRA. QCDs are easy to do, and have several benefits: Preparing to make a QCD: Qualified Charities: Conclusion: If you have money sitting in an IRA and you are thinking about sending … Read More
The fantastic benefits of a Health Savings Account (HSA)
A Health Savings Account (HSA) is an excellent way to pay for medical expenses. But you may not know that in addition to great tax benefits, they can also be used in a number of creative ways to achieve a variety of financial goals. 1. It’s YOUR money: Unlike a Flexible Spending Account, which is a “use it or lose … Read More
Should I have a business credit card?
Short answer: Yes. Long answer: Yes, for these reasons. It’s easier. If you have a business credit card and – here’s the key – don’t use it for personal expenses, then you know that everything on that credit card statement is a deductible expense. You don’t have to go back and decide what was business and what was personal. Do … Read More