529 Year-End Planning

Do your children or grandchildren need financial help for college expenses? Would you like to help them?

1. A 20% tax credit up to $5,000 per year in contributions can be claimed against Indiana income tax ($1,000 max yearly credit).

2. For your contribution to be eligible for 2017 state tax credit, the funds must be received by the program manager, no later than December 31, 2017.

3. The account must remain open for at least one year to avoid recapture of tax credit on distributions used to pay qualified education expenses.

4. Anyone who is a U.S. citizen and resident aliens at least 18 years old, emancipated minors, UGMA/UTMA custodians, and legal entities may be a participant/owner of a college savings plan.

5. If it’s time for you to consider a 529 college savings plan, call your advisor for complete details.

 

IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.

Fourth Quarter 2016 – IRA Contribution Limits for 2016

 

2016 Traditional & Roth IRA contribution deadline is 4/15/2017

2016 Simple IRA contribution deadline for Employees was 12/31/2016

2016 Simple IRA contribution deadline for Employers is 4/15/2017

2017 Simple IRA contribution deadline for Employees is 12/31/2017

2017 Simple IRA contribution deadline for Employers is 4/15/2018

2016/2017 401(k) contribution deadline is December 31st for the calendar year reporting

In order to qualify for “catch-up” contribution, you must turn age 50 by the end of the year in which you are making the contribution.

 

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Third Quarter 2016 – Required Minimum Distributions

Few things in life are certain—-The Required Minimum Distribution (RMD) is one of them. Below are some things you may not know about RMDs.

Dates and Deadline

Clients are often confused about the deadlines surrounding RMDs from retirement accounts. The first distribution is required by at least the April 1 that occurs after the account owner has reached age 70 ½. But the client is also required to take a second distribution before December 31 of that same calendar year, effectively taking two distributions in one calendar year. After the April 1 loophole comes and goes, all future RMDs have to be completed by December 31 of the year in question.

Painful Penalty

If a client doesn’t take a RMD by the corresponding deadline, they may owe a penalty of 50% of the RMD, plus still have to take the RMD and pay taxes on it.

Take it from one account

Clients who own several different tax-deferred retirement accounts must add up the total of all of those accounts at the previous year-end to determine the RMD for the current tax/calendar year. But they don’t necessarily have to take a withdrawal from each account. Instead, they can pull money from one, some or all of the retirement accounts, as long as the total of the withdrawals meet or exceed the RMD amount.

….Unless it’s a 403(b)

403(b) plan accounts must be added to the total of the retirement accounts to determine the RMD. But, you cannot use distributions from IRAs to satisfy the RMDs from 403(b)’s, nor can you use 403(b) distributions to satisfy IRA RMDs. However, if the client has several different 403(b) accounts, they can take the RMD from just one of the accounts, as long as it’s at least as much as the RMD based on the sum of all of the 403(b) accounts.

Cash or Securities

Retirement account owners are allowed to take “in-kind” distributions from their accounts to satisfy the RMD, meaning that instead of taking cash out of the account, they could transfer securities or shares to an individual or joint account. Although the “in-kind” distribution amount is still taxed as ordinary income for the value on the date of the distribution, the new cost basis of the holding is now that same amount, and any future sale of the position will be treated as a traditional capital gain (or loss) event.

At the Volkers Group, we strive to assist our clients achieve their goals within their personal risk tolerance. Call your advisor and determine if changes need to be made to your account.

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First Quarter 2016 – Save the Date

 

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IMPORTANT DISCLOSURES

Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc. 226 W. Eldorado St., Decatur, IL 62522. 217-425-6340.

 

 

 

The following social media links will take you away from our website. Please be aware that neither Investment Planners, Inc. or The Volkers Group, LLC are responsible for the content available on external websites

Fourth Quarter 2015 – IRA Contribution Limits for 2015—2016

  • 2015 Traditional & Roth IRA contribution deadline is 4/15/2016
  • 2015 Simple IRA contribution deadline for Employees is 12/31/2015
  • 2015 Simple IRA contribution deadline for Employers is 4/15/2016
  • 2016 Simple IRA contribution deadline for Employees is 12/31/2016
  • 2016 Simple IRA contribution deadline for Employers is 4/15/2017
  • 2015/2016 401(k) contribution deadline is December 31st for the calendar year reporting
  • In order to qualify for “catch-up” contribution, you must turn age 50 by the end of the year in which you are making the contribution.

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Index information is used to represent market performance, but you cannot invest directly in an index. Past performance is not indicative of future results. Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc. The Volkers Group, LLC is not affiliated with Investment Planners, Inc. or IPI Wealth Management, Inc. The Volkers Group, LLC does not offer securities advice and is not a member of FINRA/SIPC.

Investment Planners, Inc., 226 W. Eldorado St., P.O. Box 170, Decatur IL 62525. 217.425.6340

Tax information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your own tax attorney or accountant.

IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc. 226 W. Eldorado St., Decatur, IL 62522. 217-425-6340.

 

 

 

The following social media links will take you away from our website. Please be aware that neither Investment Planners, Inc. or The Volkers Group, LLC are responsible for the content available on external websites

Are You Smarter Than A 5th Grader?

We can all probably remember when this program aired on television. Of course, we all knew we were smarter, but there were times when some of the answers surprised us. We were certain our answers were correct, only to find out we were mistaken and we laughed at ourselves for forgetting facts we had once been taught.

What kinds of mistakes are we possibly making today with our investments that need to be revisited and
reevaluated? Here are a few that come to mind.

1. FAILING TO ADEQUATELY DIVERSIFY OUR PORTFOLIO: Putting all our eggs in one basket, or even in two for that matter. Spreading our investments over several investment categories is important to reduce risk.

2. INVESTING WITHOUT A PLAN: Winston Churchill once said “He who fails to plan, is planning to fail”. Without a plan we are gambling not investing.

3. MAKING EMOTIONAL DECISIONS: Don’t let “GREED” or “FEAR” rule. Stay calm and steady when making financial decisions. Stay the course!

4. FAILING TO REVIEW OUR PORTFOLIO REGULARLY: Our goals, desires, and needs change over time and even the best portfolios need revisiting or they can get off-target.

5. FOCUSING ON HISTORICAL RETURNS: One of our industry mantras is “Past performance is not indicative of future results”. Investigate several scenarios before deciding on a workable solution for you.

Investing mistakes can and do occur. Success is measured by how they can best be avoided or mitigated.  At The Volkers Group, we strive to assist our clients achieve their goals within their personal risk tolerance. Call your advisor and determine if changes need to be made to your portfolio.

The following social media links will take you away from our website. Please be aware that neither Investment Planners, Inc. or The Volkers Group, LLC are responsible for the content available on external websites.