Gifting money is one of the more confusing topics. Many people want to gift money to loved ones (family, friends, others) as a way to show they care, to provide needed funds, or simply to give away some of their assets while they are still alive. Most people assume that someone (either they or the recipient) will be taxed when gifts are given in this way. In reality, at the current exemption levels, that’s rarely the case.

My favorite delicacy is a cream filled long john. Pastry at the beginning, creamy white middle, and pastry at the end. The best part is the creamy middle. Delicious sugary white goodness….. We’ve been writing about Roth IRA’s and when to convert from a traditional IRA. In our view, the best time for the conversion is often, well, in the middle.

Many of us have exercised stock options as part of compensation. This is true from P&G to GE and many other companies. I think most of us assume that we have to pay taxes on these options. And while it’s true that paying Federal and State taxes is a given, it’s not always the case for municipalities.

The financial literature is full of articles about Roth IRA’s. Most of the articles revolve around whether to convert a traditional IRA to a Roth IRA. This article attempts to start a conversation about a unique way you and your adult children might execute a Roth conversion, especially if you expect your IRA to be part of the legacy you leave behind for those children.

I’m currently in the work force and have a 401(k) at work. Should I contribute to the traditional 401(k) or a Roth 401(k)? As with so many financial planning questions, the answer is: It depends. 

We just finished tax preparation and filing. We now move into tax planning for the rest of the calendar year. The concept of a Roth retirement account continues to grow in popularity with the introduction of the Roth 401k and plethora of articles about Roth IRA’s in general. Whether to contribute to a Roth is easily one of the most confusing questions facing our clients.

Why convert investments from a traditional IRA to a Roth IRA? In a sentence: if you pay taxes now, you will never pay taxes again. You don’t pay taxes on the principle when you remove it, nor do you pay on the earnings generated by the investments…….