TOPICS
COVERED IN THIS ISSUE
BENEFICIARY DESIGNATIONS:
You have a company-sponsored 401(k) plan; or you have a company
sponsored retirement plan, or you have one traditional or ROTH IRA
account, or you have many traditional or ROTH IRA accounts. Your
plans and accounts may be with a bank, a credit union, a brokerage
house, a mutual fund company or some other financial institution.
Each of those plans require you to designate at least one beneficiary
for payment of benefits in case of your untimely demise. When was
the last time you checked to make sure your beneficiary designations
are up to date? When was the last time you checked to make sure your
administrator still has your beneficiary designation on file? With
all of the mergers, buy-outs, consolidations and changes of personnel
and computer systems, do you know if their records are up to date?
The question is: Who will get your money?? Will it be to whom you
intended?
INSURANCE REVIEW TIME?
When was the last time you reviewed your liability
and catastrophic insurance coverages? You know you should review
both coverages and premiums at least every three years. This risk
and its related cost is usually the least item looked at by a businessperson.
Since you have not looked at it in quite a while, now is the time
to call in your insurance agent to review coverage and to quote the
renewal or change of existing coverages. It would also be wise to
ask two other insurance agents or companies to review the same coverages
and quote prices. You may be very pleasantly surprised to see what
is wrong with your existing coverage. Be sure to tell your current
insurance agent that you will be soliciting two other quotes so he/she
knows where he/she stands. It just may make that person's pencil
sharper.
Planning for the
future is a lot like planting a tree. You've got to do it today
if you want your family to enjoy it tomorrow.
IRS IS HOLDING MILLIONS OF DOLLARS
The Internal Revenue Service has millions of dollars in refund checks
that have been returned by the US Postal Service due to incorrect
names or addresses, or because taxpayers moved and did not leave
a forwarding address. If you were due a refund, but have not yet
received it, call IRS at 1-800-829-1040.
If you moved since filing your last tax return, you should file
a Form 8822, Change of Address, with the local office of the IRS
serving your old address. A form should also be filed with your local
state income tax bureau.
We provide these forms to current clients
that notify my office of a change of address.
Did you know we do more than just
prepare, compile, and crunch numbers? We are not just bean-counters.
We can also advise you on estate and business planning and offer
financial strategies to meet your goals. As your CPA, we know your
needs better than many other professionals.
COVER YOUR ASSETS
If you died tomorrow, would the "taxman" be
your biggest beneficiary? For many entrepreneurs, that question
and its answer may be shocking. That's because those who postpone
the task of estate planning may expose their families and their
companies to enormous financial risks. Estate taxes, which can
reach up to 55% (or higher in some states), can kill even the most
promising of fast-growing businesses by forcing heirs to sell prematurely
to meet tax liabilities.
You say you don't have time to worry about that now? Then you may
well be missing out on some of the best estate-planning strategie
BANKS WANT TO LOAN MONEY!
Call Absolute Business Connection and speak
to Arnie Rosenthal or Roger A. Kahan to find out how we have helped
many businesses to obtain a loan.
Call 781.341.1004
ELDER CARE
A while ago, I was discussing long-term care with a client, but
he just could not talk about it. The client ended up waiting too
long to begin a program. During our various meetings, he was diagnosed
with a terminal disease, and was no longer eligible for long-term
care insurance. We know delaying is common when it comes to planning
for elder care issues. While causing a temporary relief of a person's
discomfort, delaying a decision can cause massive financial problems.
Long-term care costs in a nursing home can range anywhere from $45,000
to $100,000 per year, depending upon the level of services you require.
Assisted living could cost as little as $25,000 each year.
You basically have three options when it comes
to long-term care. You can go on Medicaid if you are at the poverty
level, purchase long-term care insurance or you can self-insure.
Medicaid, the state administered program for low-income people, has
many restrictions and limitations. To self-insure your long-term
care program could devastate your estate planning and your heirs'
benefits. The safest way to prepare for the financial risk of long-term
care is to obtain sufficient insurance coverage. There are many choices
and benefits available to this form of protection. For more information,
please call me
Here we are with are our grandchildren. |
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Top
row: Leah (David and Lois) with her son William (our great
grandson); Roger and Evelyn; Jenni (David and Lois); Rachael
(Michael and Jessica). Lower
row: Erika (Michael and Jessica); Tyler (Julie and Mark); Zachary (Julie and
Mark)
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JOB SEEKING EXPENSES
An emailed question: I am interviewing for a medical residency position.
I've interviewed at 22 different programs. All of the expenses have
been paid for through money from a non-government loan made available
for this purpose. Are any of the expenses deductible? Thanks, Jason
Hi Jason. Individuals may deduct all expenses incurred in seeking
employment in the same trade or business regardless of whether or
not the search is successful.
Expenses may not be deductible if an individual is seeking employment
in a new trade or business even where employment is secured.
An individual seeking his/her first job or switching his trade or
business, or a person with a long period of unemployment may be denied
a deduction.
Of course, if the job seeking costs are deductible, there are some
limitations and restrictions.
Roger A. Kahan
FIRST IMPRESSIONS
When clients, customers or any other person telephones your office or business or enters your reception area, is the first person they encounter a gum-chewing employee whose only knowledge about your business is where the rest rooms are or where and when are coffee breaks? A first impression stays with your visitor and is hard to change.
If you think about it, that first impression could
be a permanent reflection of your company.
Employees having knowledge about your organization's
operations and its benefits should fill those positions.
FAMILY WEALTH MANAGEMENT
The smart planning objectives of owners of family held businesses should not be just tax reduction, but wealth management.
This includes more planning than you normally would think should be accomplished to reduce business taxes. Added would be the restructuring of your business to best meet your objectives and the objectives of the family as a whole, including business succession planning to ensure continuity of management. Also in this level of planning, you should include estate tax strategies that protect the wealth of your business. You should expect to provide family planning to preserve family harmony and avert disputes that could harm the business and the family.
The Massachusetts Society
of CPAs represents over 8,800 certified public accountants working
in public accounting, industry & business, government and
education.
ESTATE PLANS THAT WORK
Do you know whether your current estate plan will accomplish all that
you expect it to do? If you are like most people, you probably do not
know the answer to this question.
The truth is that many estate plans do not work. Often, title is incorrect
and proper allocation of ownership is wrong. Sometimes, initial personal
planning projections are ignored. The result is many plans do not accomplish
what the person who created them intended. This might result in a loss
of inheritance, greater cost to produce and maintain, or unforeseen
emotional costs to the family as they try to straighten out all of
the problems.
With my experience and association with other professionals, I can
help you create a sound estate plan, customized to help assure it actually
carries out your wishes. I suggest and provide an annual review to
assure it is up to date. As a result, at settlement, costs for the
family may be significantly lower than traditional approaches.
DON'T FORGET:
"IT'S NOT WHAT YOU MAKE THAT COUNTS; IT'S WHAT YOU KEEP!"
Roger A. Kahan is a Certified Public
Accountant, Business Advisor, and Wealth Care Professional with an office
in Stoughton, Massachusetts, serving the tax and financial needs of individuals
and small to medium sized businesses almost anywhere in the United States.
And with the advent of the Internet, his professional tax consultation
extends into several other countries. Roger is always seeking additional
clients and professionals wishing to save or invest money and better
manage their own life; or a friend, a relative, or a client's personal
or business life.
Do you know of someone that could
use our professional services? Please let us know if we can use your
name in an introductory letter or phone call.
Thank
you.
No one is required to pay more
in taxes than the law demands. If you pay too much, you have fewer resources
to meet your other financial goals. I can help find tax deductions and
credits, and help you plan so your taxes can be as low as possible. I
can also assist you with business and estate tax planning.
The information contained in this
publication has been obtained from sources I believed to be reliable
at the time of writing, but are not guaranteed as to their accuracy or
completeness. This material, or any portions thereof, may not be reproduced
without prior written permission of Roger A. Kahan, CPA.
