Key Points

...

Tax Concepts

Recent Tax Updates Summary

2025-tax-changes-document-avalara-tax-changes-2025.pdf.  GD

2025-tax-changes-document-avalara-tax-changes-2025.pdf. file

IRS Tax rates based on Marital Status 2021

...

States That Don't Tax Income

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming

States That Don't Tax Retirement Distributions

...

Another way to reduce RMDs is by buying a deferred income annuity. You can invest up to 25% of your IRA or 401(k) account (or $135,000, whichever is less) in a type of deferred income annuity known as a qualified longevity annuity contract (QLAC). When you reach a specified age, which can be as late as 85, the insurance company turns your deposit into payments that are guaranteed to last the rest of your life

The portion of savings used for the annuity is excluded from the calculation to determine your RMDs. For example, if you have $500,000 in an IRA and transfer $100,000 into a QLAC, your RMD is based only on the remaining $400,000. This doesn’t eliminate your tax bill—it just defers it. The taxable portion of the money you invested will be taxed when you start receiving income from the annuity.

QLACs offer other advantages to retirees who want guaranteed income later in life. Because you’re deferring the income stream, payouts are much higher for deferred income annuities than they are for immediate annuities, which start payouts right away. For example, a 65-year-old man who invests $100,000 in an immediate annuity will receive a payout of $493 a month, according to www.immediateannuities.com. That same amount invested in a deferred-income annuity that begins payments at age 80 would pay $1,663 a month.

define options for accumulation period, investment guaranteed minimum returns, principal return to beneficiaries etc

Medicare Premium Fees for Part B for 2024

...

there is a way to increase the cost basis before a sale.

taking advantage of Section 1014 of the Internal Revenue Code, also known as a step-up in basis.

If you're a wealthy young American and you expect to make a substantial profit on the sale of assets like stocks or real estate, here's how gifting those assets to your parents could help you save a fortune.

So, if you gave stock worth $36,000 to your mom and dad today, you could transfer it tax-free by giving them each $18,000. Say the stock went up in value and was worth $336,000 by the time your second parent died in 20 years, the "cost basis" would reset to $336,000. If you sold the stock for $340,000 at that time, you'd only have to pay capital gains taxes on $4,000. Estate taxes would only be a concern if their estate crosses the threshold.

Potential Challenges

2024 Election Tax Impacts Reviewed

...

Candidate Solutions

Tax Planning Tips

• Mortgage interest

• Interest on home equity loans and HELOCs

• Discount points

• Property taxes

• HOA fees

• Home improvements

• Home office expenses

• Capital gains tax

• Final thoughts

• FAQs

401K Record Keeping Systems Summary

...