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1
5 Money Pitfalls to Watch Out For In Divorce
2
2009 Retirement Plan Contribution Limits
3
Do You Want a Bigger Tax Refund?
4
House and Senate Pass Legislation Waiving 2009 RMDs
5
Uniform Transfer to Minors Act (UTMA)

5 Money Pitfalls to Watch Out For In Divorce

If you are going through a divorce you will experience many different emotions; fear, anger, resentment and distrust are just a few. All of these emotions can wreck havoc on your finances. You will be making major financial decisions while your emotions are influencing your choices. The decisions you make during a divorce will impact you for decades, so here are five common mistakes to watch out for during a divorce.

1. Choose your attorney with caution

If you can end the relationship without a legal fight, you will begin your new life with far more money. Legal battles are …

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2009 Retirement Plan Contribution Limits

The IRS has announced the cost of living adjustments applicable to dollar limitations for 401(k), profit sharing, IRAs, and other retirement plans in 2009. The new limits are as follows:

  • 401(k) limit will increase from $15,500 to $16,500.
  • 401(k) “catch-up” limit for individuals age 50 and over will increase from $5,000 to $5,500.
  • Defined contribution plan limit will increase from $46,000 to $49,000.
  • Defined benefit and cash balance plan annual benefit limit will increase from $185,000 to $195,000.
  • Contribution limit for benefit and contribution calculation will increase from $230,000 to $245,000.
  • Highly compensated employee definition will increase from $150,000 to
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Do You Want a Bigger Tax Refund?

Do You Want a Bigger Tax Refund?How much will you get back from the IRS this year? If you don’t know, than it’s a good time to begin your tax planning. Most people don’t plan their taxes and then hope for the best. If you get a larger refund than expected, you’re happy, but if you’re forced to pay taxes, you’ll be disappointed. Tax planning gets rid of these surprises.

The truth is, when your taxes are prepared, you are merely documenting the past. There is not much that can be done to save money, when compared to early tax planning. With tax planning there is …

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House and Senate Pass Legislation Waiving 2009 RMDs

House and Senate pass new laws on RMDs

Photo by: James Morrison

Both the U.S. House of Representatives and the U.S. Senate passed a bill that would waive required minimum distributions (RMD) in 2009. Normally, individuals over the age of 70.5 are required to withdraw an amount calculated by dividing the prior December 31st balance of the retirement account by the individual’s life expectancy as determined by the Internal Revenue Service. The government requires these distributions to ensure that money in retirement accounts is ultimately taxed. Failure to withdraw the required amount subjects the individual to a 50% penalty on the amount that should have been withdrawn in …

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Uniform Transfer to Minors Act (UTMA)

Uniform transfers to minors accounts allows someone to make a gift or a transfer of property to a minor without setting up a trust. All transfers to UTMA accounts are considered irrevocable and the donor cannot reclaim the gift or change the beneficiary of the account.

An adult is designated as the custodian to manage the account for the benefit of the minor until the child reaches the age specified in the statute. Custodians have certain powers and responsibilities under these laws and they should consult with legal counsel to understand their obligations with respect to the account. Once the …

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