Generous grandparents have even more reasons to establish 529 educational savings plans for their grandchildren in 2024 when new Roth IRA rollover provisions are in effect. Generally, contributions to 529 plans grow tax-deferred and can be withdrawn by beneficiaries tax-free when used to pay for qualifying education expenses, including tuition, books, computers, and room and […]
According to the U.S. Bureau of Labor Statistics, the median number of years that wage and salary workers aged 25 and older had been with their current employer in January 2022 was 4.9 years, the same as in 2021 and just 0.01 percent less than in 2018. That translates to approximately nine jobs over 45 […]
College tuition costs continue to rise, forcing families to plan far in advance for how they will afford the future costs of their children’s higher education. Taking advantage of a 529 saving plan helps families reach these goals while providing significant tax benefits. Contributions you make today to a 529 college-saving plan grow tax-deferred until […]
Effective Jan. 1, 2024, investors with unused dollars in certain 529 college-savings plans can roll their remaining balances into tax-free Roth IRAs for the benefit of those plans’ named beneficiaries without risk of penalties or income-tax exposure. Moreover, investments in Roth IRAs may continue to grow free of tax for beneficiaries to withdraw in retirement […]
The recent collapse of regional banks Silvergate Bank (SIVB), Signature Bank (SBNY) and Silicon Valley Bank (SVB) has sent ripples through the banking sector and fanned talk of a U.S. banking crisis. While the talk of widespread contagion may be understandable due to the memories of the 2008 financial crisis, it is important to put […]
Thanks to expanded federal estate tax exemptions introduced in 2018, very few families have been subject to federal estate, gift and generation-skipping transfer (GST) tax. However, because the higher exemption is a temporary provision of the tax law and subject to change under the influence of shifting political powers, families must prepare their estate plans […]
Despite a rapid recovery from the height of the pandemic, the global economy faced a new set of challenges in 2022. What started as global economy embattled by supply chain issues was stressed further with the Russian invasion of Ukraine. This amplified inflationary pressures, prompting central banks across the globe to raise rates at the […]
The equity markets provide investors with opportunities to build wealth, but not without risks. Before putting any money into the public markets or any investment vehicles, you should take the time to consider your long-term goals, risk tolerance and time horizon. When these factors are accounted for in a well-thought-out strategy, you may be better prepared […]
Most versions of economic theory assume humans are rational beings who will make the best decisions given the facts of their current circumstances. Unfortunately, a theory is not reality. People commonly make financial decisions based on irrational and inefficient cognitive biases and other psychological factors that ultimately influence fluctuations in the public equity markets. To […]
On August 16, 2022, President Biden signed into law the Inflation Reduction Act (IRA), which represents the largest investment the country has ever made to fight climate change. Also included in the $430 billion spending-and-tax package are provisions intended to reduce consumers’ healthcare costs, lower the federal deficit and bolster the IRS’s taxpayer support services […]