Employees Have Until Tax Filing Deadline to “Recharacterize” 2018 IRA Contributions

This week’s column discusses the “recharacterization” of IRA contributions. Under the Tax Cuts and Jobs Acts of 2017, the new tax that became effective Jan. 1, 2018, those individuals who made the wrong type of IRA contributions may still undo their contributions through recharacterization. The column explains the recharacterization process, including IRS required forms and deadlines. View More

Under the new tax law, does it make sense to pay off one’s mortgage?

The Tax Cuts and Jobs Act of 2017 (TCJA) has changed the rules as to whether homeowners should pay off their existing home mortgage debt. This week’s column discusses these rule changes resulting from TCJA’s passage Among them are the doubling of the standard deduction and the limitation of the home equity loan and line of credit interest deduction. View More

What is a “source tax?”Jul 25, 2017

Source taxes, now prohibited, were taxes imposed by certain states on retirement income of non-residents who had accumulated entitlement to benefits while a resident of that state. Retirement income is only state taxable, if at all, by the state in which the taxpayer resides. View More

Are Federal Employees’ Group Life Insurance death benefits taxable?Jul 25, 2017

Death benefit payments made under FEGLI to a designated beneficiary are not taxable as income to the beneficiary. View More

Is an “alternative form of annuity” lump sum payment taxable?Jul 25, 2017

Is a federal retirement annuity taxable for state income tax purposes?Jul 25, 2017

Is a federal retirement annuity taxable for federal income tax purposes?Jul 25, 2017