The ABLE Account Under the Tax Cuts and Jobs Act

Posted by Anna Hays

July 11, 2018 at 1:30 PM

In 2014, Congress created ABLE (a.k.a., 529A) accounts for qualified disability expenses. But several limitations became apparent as states started to establish their ABLE account programs. Fortunately, the ABLE account under the Tax Cuts and Jobs Act (TCJA) corrects some of these shortcomings. Here, we’ll take a look at those improvements, the differences between an ABLE account and special needs trusts, and how changes under the TCJA present a special needs planning opportunity for you and your clients.

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Topics: Estate Planning

Benefit or Backfire: Navigating the Irrevocable Medicaid Trust

Posted by David Haughton, JD

July 10, 2018 at 10:00 AM

Establishing an irrevocable Medicaid trust can help protect assets from liquidation when the need for an extended nursing home stay arises. When this strategy works, a loved one’s admission to a long-term care facility does not result in a substantial spend-down of investments, and wealth can be preserved and transferred to the next generation. But a strategy involving placing assets into an irrevocable arrangement should not be entered into lightly, especially if there are viable alternative protection strategies available.

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Topics: Financial Planning

How Cryptocurrencies Affect Cybercrime—and What It Means for You

Posted by Sean Mackey

July 3, 2018 at 10:00 AM

In 2016, I invested 2 U.S. cents in bitcoin. Two years later, bitcoin had increased in value by more than 34 times, and my investment was worth—get ready for it—68 U.S. cents.

For those who take their investments more seriously, achieving a 3,400-percent return may seem like a wild success story—yet it’s happened! (See Figure 1.)

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Topics: Information Security

Which Clients Should (and Shouldn’t) Convert Assets to a Roth IRA?

Posted by Mike Triana, CRPS

June 27, 2018 at 1:30 PM

Roth IRAs can be extremely efficient retirement savings vehicles. They are funded on an after-tax basis, and as a long as certain requirements are met, distributions are free of tax and penalty.

Clients can fund their Roth IRA in one of two ways: via annual Roth contributions or by converting assets from a qualified plan or another type of IRA they already own. But whereas annual Roth contributions are subject to modified adjusted gross income (MAGI) limits, Roth conversions are not. It’s one of the reasons any of your clients could decide to convert assets to a Roth IRA.

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Topics: Retirement Income Planning

Changes to Pass-Through Business Taxation Under the Tax Cuts and Jobs Act

Posted by Whitney Drechsler, JD

June 26, 2018 at 10:00 AM

As a small business owner and/or a financial advisor to small business owners, it is imperative for you to be informed regarding changes to pass-through business taxation under the Tax Cuts and Jobs Act (TCJA). Some of the provisions are complex and will require you to use the appropriate calculators, as well as to seek advice from a tax counselor or tax preparer. So, to help you lay the groundwork for understanding these changes, let’s take a deeper dive into what’s new for pass-through business taxation under the TCJA, as well as some planning opportunities for you and your clients.

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Topics: Financial Planning

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