Vernoia, Enterline + Brewer, CPA LLC

Archive for the ‘Retirement Planning’ Category

Still Time to Contribute to an IRA for 2016

The IRS reminds taxpayers that they still have time to contribute to an IRA for 2016 and, in many cases, qualify for a deduction or even a tax credit. Available since the mid 70s, individual retirement arrangements (IRAs) enable employees and the self-employed to save for retirement. Contributions to traditional IRAs are often deductible, but distributions, usually after age 59½, are generally taxable.

ira (more…)

Age 50 or Older? Catch-Up Contributions Are For You

retireesAre you in your 50s or 60s and thinking more about retirement? If so, and you’re still not completely comfortable with the size of your nest egg, don’t forget about “catch-up” contributions. These are additional amounts beyond the regular annual limits that workers age 50 or older can contribute to certain retirement accounts. (more…)

IRS Guidance on Phase Retirement Payments

IRS offers guidance on taxation of phased retirement payments

senior couple hugging on sail boat or yacht in seaPhased retirement has become an increasingly popular trend lately. Along with its increased use, however, a number of questions have arisen. The IRS recently has issued guidance for determining the taxable portion of payments made to an employee during phased retirement. The guidance explains whether the payments are “received as an annuity” under Code Sec. 72 and how to determine the taxable portion of payments that are not received as an annuity. (more…)

FAQ: What is the Roth IRA contribution limit for 2016?

senior couple hugging on sail boat or yacht in seaIndividuals may contribute up to $5,500 to a traditional and a Roth IRA for 2016. This is the same limit as 2015. An individual age 50 and older can make a catch-up contribution of an additional $1,000 for the year. The contribution is limited to the taxpayer’s taxable compensation for the year, minus contributions to all non-Roth IRAs. (more…)

The Benefits of Hiring a Professional Accountant

tax returnAccounting Professional software

According to New Jersey CPA officers at Vernoia, Enterline + Brewer, LLC, accountants pay up to $35,000 for their accounting software, which is far more sophisticated than consumer-based products such as TurboTax. An accountant’s more advanced software has the ability to quickly scan your information and organize line items and forms correctly. While the software automates data entry and organization to minimize the potential for human error on your return, what is most important is the education and experience of your Certified Public Accountants and the tax planning they might offer. (more…)

IRS provides guidance to retirement plans following approval of same-sex marriage

The IRS has issued guidance (Notice 2015-86) for retirement plans and health and welfare plans following the Supreme Court’s approval of same-sex marriage nationwide in Obergefell, 2015-1 ustc ¶50,357.Obergefell requires that a state must license a marriage between two people of the same sex and must recognize same sex marriages performed out of state. (more…)

Treasury launches myRA accounts nationwide

After successful completion of a pilot program, the U.S. Treasury launched the myRA retirement savings account nationwide. President Obama created the myRA program in 2014 and Treasury conducted a year-long pilot program. myRAs are intended to serve as starter retirement accounts for populations underserved by traditional retirement savings vehicles. (more…)