Today the House Financial Services Committee will hear testimony from the SEC inspector general on the Madoff scandal. It promises to be the beginning of what Rep. Paul Kanjorski (chairman of the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises) is calling “the most substantial rewrite of laws governing U.S. financial markets since the Great Depression.” Wall Street could not have escaped congressional scrutiny after the year that we’ve had even if Madoff had never happened, but the failure of regulators to protect the public from his massive fraud has drawn fresh attention to the shortcomings of existing
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 …Read More
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
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 …Read More
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 addition to income taxes …Read More