Tuition & Fees Deduction - This provision expires 12/31/16.
Teacher Classroom Deduction - This provisions
expired 12/31/15.
Catch-up Contributions - If you have reached 50 years you can make "catch-up" contributions to
your retirement savings plans. For 2013 these limits are: IRA - $1,000. 40(k) and similar plans $5,500. and SIMPLE
plans $2,500.00.
Required Minimum Distributions For those of you who have reached the young age of 70 1/2 are subject
to RMD (required minimum distribution) from IRA's and other qualified plans by the end of the year. The failure to take this
RMD can result in a 50% (yes it is not a typo) penalty of the amount that should have been taken out but was not.
Exceptions: (a) The first RMD can be postponed until April 1 of the following year. However this means that 2 distributions must
be taken in the second year - one by April 1 and the other by December 31. (b) For qualified retirement programs (excluding IRA's) RMD's
can be postponed until retirement if the plan allows. However this option does not apply to those who own more than 5%
of the business and (c) There are no RMD's for ROTH IRA's for account owners, but beneficiaries must take RMD's even though the withdrawals
are not taxable.
Code Section 1031 Exchange This is a great vehicle to use if you are selling investment real estate and
wish to defer taxes that would be owed. The Section 1031 allows you to do this by "exchanging" investment properties.
There are some new twists to this old law and I believe if you want to continue to hold investment real estate and to defer tax this
may be the way to go. But the key here is to plan, plan and plan some more to make sure that all requirements are met and new
property identified.
