Asset Planning, Inc Blog

The latest from the team.

Earned Income and Social Security Tax

We came across an article on written by Mary Beth Franklin. It gives a great explanation as well as examples and limits on how Social Security benefits are taxed if you are planning on working while collecting social security. Definitely worth a read if you have any income from other sources while collecting Social Security.


Click here to read the full article



Continue reading
  119 Hits
119 Hits

IRA & 401k Contributions Increase for 2019

2019 annual contribution limits for eligible tax filers:

401(k), 403(b), most 457 plans, and Thrift Savings Plan is increased from $18,500 to $19,000.

IRA contributions increased from $5,500 to $6,000 per year. The age 50+ catch-up contribution limit remains at $1,000.

Tax deduction and Income limitations for 2019:

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2019:

If single or joint married taxpayers are not covered by a work retirement plan, they may fully deduct traditional IRA contributions. Other tax filers may partially or fully deduct contributions if they meet the below exceptions:

  • Single taxpayers covered by a work retirement plan, can fully deduct if modified Adjusted Gross Income (AGI) is below $64,000. A partial deduction is allowed if modified AGI is between $64,000 to $74,000
  •  Married Joint taxpayers, where the spouse making the IRA contribution is covered by a workplace retirement plan, can fully deduct if modified AGI is below $103,000. A partial deduction is allowed if modified AGI is between $103,000 to $123,000
  • Married Joint taxpayers, where the spouse making the IRA contribution is not covered by a workplace retirement plan, but the other spouse is, can fully deduct if modified AGI is below $193,000. A partial deduction is allowed if modified AGI is between $193,000 to $203,000

The Modified AGI phase-out range for Roth IRA contributions is $122,000 to $137,000 for singles and heads of household, $193,000-203,000 for married couples filing jointly.

Continue reading
  140 Hits
140 Hits

Trump's Proposes to Extend RMD Age

President Trump issued an executive order directing the Treasury Department to extend the age for required minimum distributions from retirement accounts. Currently the age is 70 1/2. His reasoning is that people are working and living longer. This can be good news for some of our clients who don't necessarily need to take the withdrawals at 70 1/2. Here is an articles from Forbes with some pros and cons to the proposed change.

Read Here

Continue reading
  150 Hits
150 Hits

Deadline for 2017 IRA Contributions

The deadline for getting your 2017 IRA contributions to us is Wednesday, April 11th. Tax season is an extremely busy time so the sooner you get these in the better. Feel free to stop by the office anytime from 8am-4pm to drop them off.

Have a great weekend!


Continue reading
  206 Hits
206 Hits

Tax Reform: Summary of Changes

President Trump signed the tax reform bill this morning. Most provisions are set to take effect in 2018, but many of those are also set to expire or sunset in 2025. Here's a summary of what we think are the major changes that will affect our clients. We will have a more in-depth analysis and summary in our year end newsletter.

1. Reductions in individual tax rates. The bill retains the current structure of seven investor tax brackets, but lowers five of them. It also includes the sunset provision, meaning it's a temporary arrangement from 2018 to 2025.
Here's the breakdown of the new vs. current marginal tax rates:

Current Marginal Tax Rate

Proposed Marginal Tax Rate

Income Level (Single Filers)

Income Level (Couples Filing Jointly)



$0 -- $9,525

$0 -- $19,050



$9,525 -- $38,700

$19,050 -- $77,400



$38,700 -- $82,500

$77,400 -- $165,000



$82,500 -- $157,500

$165,000 -- $315,000



$157,500 -- $200,000

$315,000 -- $400,000



$200,000 -- $500,000

$400,000 -- $600,000



$500,000 and up

$600,000 and up

2. Reduction in corporate tax rate to a maximum rate of 21% (a reduction from 35%). Also, corporate income earned abroad and brought back to the United States will be taxed between 8 and 15.5%, instead of the current 35%. These are permanent reductions.

3. Standard Deductions increasing nearly 90%. For married couples filing jointly, the standard deduction rises to $24,000 from $12,700; for single filers, it moves to $12,000 from $6,350.

4. Additional changes to Itemized Deductions. These vary, and some might be more impactful than others.

  • Personal exemption ending, but child tax credit increasing. The bill ends the personal exemption of $4,050 for you, your spouse, and your dependents; it doubles the child tax credit to $2,000 per dependent child under age 17.
  • Limits to state and local taxes ("SALT"). Under the bill, you may only deduct up to $10,000 in state and local taxes, including sales, income, and property taxes. This deduction was not previously subject to limitation.
  • Caps on mortgage interest. The bill allows mortgage interest deductions for current homeowners, but caps the interest deduction at $750,000 in mortgage debt for homes bought in 2018 and beyond, down from the $1 million limit in place now. It eliminates deductions for interest on home-equity loans, as well as deductions for moving expenses and employer-provided expense reimbursements (except for members of the military).
  • Expands medical deductions. Current law allows for deduction of medical expenses over 10% of adjusted gross income (AGI). The bill lowers the threshold to 7.5%.

5. Changes to estate planning.  The bill doubles the estate tax exemption to $10 million, but it's also indexed for inflation after 2011. The bill also calls for doubling the value threshold on the 40% levy on estates worth nearly $11 million for individuals and $22 million for couples. The estate tax exemption also has the sunset provision, meaning that the bill calls for a reversion back to current exemption amounts in 2026.

6. Charitable deductions. Although the current tax deductions stay in place, the doubling of the standard deduction to $24,000 essentially raises the threshold on deductibility. Taxpayers will have to itemize donations to get the benefit.

      From all of us at Asset Planning, Inc. we wish you a wonderful Holiday Season!

*Asset Planning, Inc. does not provide tax advice. We suggest clients consult with a tax-planning professional with regards to their personal circumstances.

Continue reading
  214 Hits
214 Hits

Looking for Ways to Donate and Get a Tax Break?

Many times we are asked by our clients about ways they can give back through planned gifting. In our last quarterly newsletter, Carol explained how you can donate part or all of your mandatory IRA distributions (RMD) to a charity of your choice which also reduces your taxable income for the year. Another way of doing this is by setting up a charitable annuity. The way it works is the donor gives a gift to the charity (amounts vary), the donor receives fixed payments for life and the donor is entitled to a federal income tax deduction the year the gift is made. I have included a link to one that is offered through the ASPCA to use as an example but there are many more out there to suit everyone’s unique philanthropic wishes.

Continue reading
  293 Hits
293 Hits

Sandy was Quoted in Financial Planning Magazine

Financial Planning Magazine reached out to Sandy to get her reaction to President Trump's proposed tax cuts for businesses and the elimination of certain deductions. This is what she had to say. You can read the full article here:

Sandys quote on Trumps tax cut in Financial Planning Magazine

Continue reading
  328 Hits
328 Hits

Reminder: 2016 IRA Contributions

We wanted to send out a reminder that it's not too late to contribute to your IRA accounts for 2016 as long as you are still working and have not yet met your contribution limit. The IRS deadline for contributions is April 18, 2017. Please give us a call if you would like to make a contribution or have any questions.

Continue reading
  520 Hits
520 Hits

Tax Deadline is Fast Approaching

The April 18th deadline to file your tax return is right around the corner. In your rush to meet the deadline we would like to remind you that it’s not too late to contribute to your IRA to receive the tax benefit.  The current funding limit is $5,500 for those under 50 and $6,500 for people 50 and over. Even if you participate in a plan at work you may still contribute, you will not receive the tax deduction but the earnings will grow tax free until you are required to take a distribution – over age 70 1/2. . If you have been thinking about opening an IRA to supplement your retirement there is no better time than the present to get one started. Please contact your advisor to determine which type of IRA would best suit your financial needs.

Continue reading
  781 Hits
781 Hits

Planning for your 2013 Tax Return

It is never to early to begin planning for next year's tax return. Planning ahead can save you time and money in 2014. Here are six simple steps to take to make your next tax return easier.

1. Adjust your withholding
Now is a good time to review your withholdings to make the taxes withheld from your pay closer to the taxes you will owe for this year. You can use the IRS Withholding Calculator at to complete a new Form W-4.

2.Store your return in a safe place.
Doing so can facilitate locating it in case you need to refer to your return. For example, you may need a copy of your return when applying for a home loan or financial aid.

3. Organize your records
These record include your receipts from big purchases, mileage logs, and other deductable expense.

4. Hire a tax professional
If you already have a tax professional  consult with them now to tart your tax planning for next year.

5.Consider itemizing deductions
If your itemized deductions typically fall just below your standard deduction you can bundle your deductions. If you usually claim a standard deduction, you may be able to reduce your taxes.

6.Keep up with changes
its always good to keep  up with changes in the law especially taxes. For helpful tips, and IRS announcements, visit the IRS website,


Continue reading
  1212 Hits
1212 Hits

Time is running out for tax planning on IRAs inherited last year

Normally, heirs get to take distributions from inherited IRAs over their lifetimes. But if just one beneficiary of the account isn't an individual person, the IRA has to be distributed within 5 years for all beneficiaries. The problem can occur when a decedent names a charity or college as one of the beneficiaries. Tax Planning Tip: The IRS allows the individual beneficiaries to take distributions over their lifetime (enjoying tax free earnings growth) as long as the charity, school, etc. is paid off by September 30 of the year following the death of the IRA owner.

Continue reading
  1010 Hits
1010 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
car loans June 29 October 1 2020. information Facebook borrowing money credit cards home security executive order Brexit vote drive /usb Notary Public home break-ins increase parking spots 401K Wells Fargo employees 2017 TD Ameritrade National LINC Conference banking pet supplies Affordable Care Act card reader estate planning IRA accounts flash drive disaster areas D premiums 4 pm -8pm Wells Fargo customers phishing scams portal relief efforts pets retirement accounts fees illiegal robocallers Two-Step Verification credit score 20 year anniversary FEMA website trust CERTIFIED FINANCIAL PLANNER exam driver license Social Security 23 andme https ://seekingalpha official certification ID card interest rates house sitter client portal non-prescripstion sunglasses paperwork clutter Open Enrollment birth certificates Legal robocalls consumer spending Roth IRA Open House Social Security Administration trustee bottom line debt estate fun facts pet emergency folder 2017 IRA contributions documents assets home Fox News story Puerto Rico credit card fraud insurance policies Shred paperwork insurance policy Kraig Mathias money earthquake app IRS deadline Facebook profile Supplemental Security Income summer April 18 2017. Independence Day contribution limit Medicare Part B Auto insurance privacy settings clients investment statements Healthcare identity theft prescription eyeglasses California Lions Friends wells Fargo credit card company president Trump Orange County vacation asset Planning “ skimmer ”. Victor Dergunov jury duty Mobile Banking Security Tips memorial Day weekend VOIP landline phones clients show support pet industry opt-out Medicare question 70 1/2. DNA test kits spring cleaning tax season Medicare privacy notices July 4 ice cream event policy April 11 gap insurance home mortgages credit freeze retirement emergency kit chip-enabled EMV cards vision screening account numbers Treasury Department identity thieves rescue organizations retirement planning notary services National Ice Cream month Orange County Superior Court clone counterfeits