Perisho Tombor Brown PC

Reduce your personal and business tax liability with our new 2015 Tax Planning Guide!. http://conta.cc/1Or32ag

There is an important tax law change that went into effect January 1st regarding IRA rollovers. IRA rollovers involve withdrawing funds from one IRA and transferring/depositing the funds into another IRA. These rollovers are not subject to tax if the relevant rules are followed. There are two ways to process an IRA rollover: 1. The first way involves taking physical possession of the funds from one IRA and depositing the amount into another IRA. If the deposit into the 2n...d IRA is made within 60 days the funds are distributed from the first IRA the rollover is not subject to tax. 2. The second way involves a direct trustee-to-trustee transfer of the funds from the distributing IRA to the 2nd IRA. This method does not involve possessing the funds, and instead is handled by the trustees of each IRA. The rule that has changed (effective January 1, 2015) is that you can only transact one "60-day" IRA rollover per year. "Year" for this purpose is once every 365 days (not once per calendar year). If you have multiple IRA accounts, all of the accounts are considered as one IRA for this rule. This means that only one "60-day" rollover can occur in a one-year period regardless of the number of separate IRA accounts maintained. If more than one "60-day" IRA rollover is made in a one year period, the second and subsequent rollovers are taxable and subject to early withdrawal penalties, if applicable. For this and other reasons, we recommend that your IRA rollovers be direct trustee-to-trustee transfers. It is risky and unnecessary to take physical possessions of the funds. Please contact tax partner Jim Tombor ([email protected] 408-985-5125) with any questions regarding this new rule or other tax strategies.

With significant tax-related provisions of the Affordable Care Act (ACA) now affecting many taxpayers not to mention continued uncertainty about tax reform tax planning is more complicated yet more important than ever. To structure your tax world most effectively, you should understand how recent tax legislation affects you and take advantage of every deduction and credit available to you. Our 2014 Tax Planning Guide addresses these questions - http://www.webtaxguide.net.../Perisho/ At Perisho Tombor Brown, our professionals are thoroughly familiar with the latest tax laws and tax-reduction strategies, and are eager to help you capitalize on all that apply to your situation. Please private message us or call us today at 408.985.5125 to schedule a time to talk about ways to lighten your tax burden and better achieve your financial objectives.

A good article on document retention.