|
|
         |
News Item #1, posted 1/27/06: Financial Dynamics, LLC relocated its company offices, effective January 1, 2006, to the beautiful Harveston Lake in Temecula, California. While Rob Leanza generally meets with clients in the Carlsbad, Escondido or Irvine offices, the Temecula office is available for meetings with clients in the local Temecula, Fallbrook or Murietta areas. Please see "Contact Us" for more information about our location and contact phone numbers. News Item #2, posted 4/11/06: The Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration (NCUA) have raised the insurance coverage on self-directed retirement accounts, including IRAs, Keoghs and 457s, from $100,000 to $250,000. This increase is the first in more than 25 years and became effective April 1. The basic insurance for individual, joint and trust accounts remains at $100,000. Visit FDIC online for more information. News Item #3, posted 5/22/06: Effective in 2010, the compensation limit ($100,000) for conversions of Traditional IRA assets to a Roth IRA will be eliminated. Also, for two years only (similar to the four-year spread in 1998), beginning in 2010, an individual can spread income tax liability of these conversion assets over two years. News Item #4, posted 5/27/06: The Tax Increase Prevention and Reconciliation Act of 2005 ("TIPRA") was signed into law by President Bush on May 17, 2006. The Act extends provisions relating to capital gains and dividends, the alternative minimum tax, and small business expensing. The Act also contains several other provisions, including changes that impact the "kiddie tax" rules and Roth IRA conversions. For more information about key provisions of the tax bill, please click on the "1040" icon below.
News Item #5, posted 5/31/06: On May 29, 2006, President Bush signed the Heroes Earned Retirement Opportunities (HERO) Act (HR 1499) into law. The HERO Act allows members of the Armed Forces to contribute combat pay to an individual retirement account or annuity (IRA). Prior to the HERO Act, members of the Armed Forces whose pay consisted primarily of combat pay were unable to fully fund an IRA. This is because IRA rules limit contributions to the lesser of a dollar amount ($4,000 in 2006) or 100% of a taxpayer's gross income. Because combat pay is nontaxable and excluded from gross income, a serviceman or woman with only combat pay was unable to make an IRA contribution. The HERO Act allows members of the Armed Forces to count nontaxable combat pay as gross income for IRA purposes for tax years beginning after December 31, 2003. Servicemembers will have three years from the date of enactment to make retroactive IRA contributions for 2004 and 2005. They will also have at least one year following the date of their contribution to claim any credit or refund that they may be entitled to for those tax years. News Item #6, posted 9/6/06: The Pension Protection Act of 2006 was signed into law by President Bush on August 17, 2006. The Act makes certain provisions of prior laws, slated to "sunset", permanent (e.g. use of 529 college plans). For more information about key provisions of the tax bill, please click on the "1040" icon below.
|
|
