Wouldn’t it be nice to have Uncle Sam chipping in for your retirement? Low and moderate income taxpayers can actually grab this perk. All they need to do is take advantage of the saver’s credit (also known as the retirement savings contributions credit), a special tax credit that helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans. This credit is in addition to any other tax savings that apply. In order to ensure credit for 2011, contributions must be made before the deadline of April 17, 2012. Employees who are tight on cash at year end may want to schedule their 2012 contributions soon so their employer can begin withholding them in January. The 2011 income limits to be eligible are as follows: [Read more…] about It’s Time to Plan for the Saver’s Credit
Long-Term Care Insurance- A Wise Investment
Many people would prefer not to think about the possibility of needing long-term care down the road. “After all,” they rationalize,” won’t my dear daughter/daughter in law care for me in my old age?” They therefore do not see long-term care insurance as relevant to them. This may be a big mistake. Considering the potential cost of long-term care, as well as other factors, it could prove even more costly to put it off. Here are a few reasons you may want to consider long-term care insurance: [Read more…] about Long-Term Care Insurance- A Wise Investment
Great Gift Idea: 529 College Savings Plan
‘Tis the season of giving, a time of deal-searching, as well as assessing what our loved ones could use. Here’s a gift you may want to consider: a 529 college savings plan. A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. Every state now has a 529 Plan, and the funds can be used to meet costs of qualified colleges nationwide. Saving for college has never been more important, and a 529 Plan offers several significant perks: [Read more…] about Great Gift Idea: 529 College Savings Plan
Divorcing Couple Ordered to Swap Facebook Passwords
A divorcing couple in today’s day and age may be asked to
give up more than just their money, cars, TVs or the kids. They may be ordered
to hand over their social networking passwords, as well. At the end of
September, Judge Kenneth Shluger ordered that the attorneys for Stephen and
Courtney Gallion, a soon-to-be divorced couple from Connecticut, exchange
“their client’s Facebook and dating website passwords.” [Read more…] about Divorcing Couple Ordered to Swap Facebook Passwords
NJ Tax Refund for Madoff Victims’ Phantom Income
A New Jersey Tax court has ruled that investors in Bernard
Madoff’s Ponzi scheme are entitled to refunds on state taxes paid for gains
that never existed. John and Cathy Dalton, a Middletown couple who invested
nearly $700,000 with Madoff, filed amended New Jersey returns for 2005, 2006
and 2007. They had paid taxes on more than $206,000 in capital gains and almost
$37,000 in dividends that proved to be fictitious. They recalculated the taxes
payable, and requested a $5,026 refund. On October 1, 2009, the Division of
Taxation denied the refund, despite the fact that the capital gains and
dividends were non-existent. Their argument was that since the Daltons had withdrawn a portion of their investment in [Read more…] about NJ Tax Refund for Madoff Victims’ Phantom Income
Choose Your Joint Account Holders Wisely
Before adding a joint account holder to your account, it would be wise to read about this recent New Jersey case which illustrates the risks involved when adding someone, even a close family member, to your account.
In Coiro v. Wachovia, 11-cv-3587, the recently widowed Josephine Coiro added her daughter to her checking account so the money could be accessed even if she became ill or would be unable to act. In April 2010, she sold her home and deposited the proceeds of $381,272 in the account. Five days later, her daughter filed Chapter 7 bankruptcy. Even though her daughter did not include the account as an asset, Wells Fargo, which monitors bankruptcy filings, froze it. [Read more…] about Choose Your Joint Account Holders Wisely