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The SECURE 2.0 Act allows a new option for individuals with excess funds in their 529 college savings accounts. It allows for a tax-free rollover of unused assets into the beneficiary’s Roth IRA starting in 2024. It’s important to be cautious as certain limitations apply. We would be happy to assist, please contact us at 602-212-1040...

Financial Advisors should be aware of tax consequences At Vestpointe, we are unique.  We are CPA’s as well as CFP’s and registered investment advisors.  Our knowledge in tax planning allows us to be a diligent financial partner to our clients. We have established that conscientious financial advisors take into account the tax implications of every investment before it is purchased and most especially when sold in a client’s account.  Cer..

If you think you may have a requirement to file 1099s for 2022, here is some helpful information regarding the filings and deadline. The IRS is focusing heavily on taxpayer compliance with information reporting laws. Beginning with tax year 2020, the IRS has revised Form 1099-MISC and created a new form, Form 1099-NEC, for reporting non-employee compensation and attorney fees (NEC). Form 1099-MISC will still be used to report miscellaneous paymen..

As we near the end of 2022 (believe it or not!) now is the time to consider your last-minute tax moves that may save you some hard-earned dollars. The following items are a consolidation of planning ideas that we come across often and can be implemented before the end of the year. This advice is general in nature, and you should consult with your tax advisor. Harvest capital losses – 2022 has been an awful year in the stock and bond markets. Ma..

Investment Market Update-September 29, 2022     We continue to monitor what is happening in the US and world markets. Much of what happens in the markets is correlated with global markets and the past week has been no exception. Yesterday, September 28, 2022, had all the indices ending on an up note but only after a brutal 6 days of losses. The markets dropped last week on the hawkish tone taken by Jerome Powell, the Fed chairman, but also dr..

The recent volatility in the markets has created a lot of questions and concerns for investors. In the past  few days, we have had swings that went from steep losses to recovering by the end of day for the  major indices. The markets are pricing in the Federal Reserve’s decision to start tightening monetary  policy and raise rates. In addition, they are pricing in the geopolitical news, lingering concerns  surrounding the virus and concerns..

Building a higher net worth is a high priority goal for many people.  It is often a top contender in New Year’s Resolutions.  Building wealth requires a long-term plan and patience.  Warren Buffett considers patience the cornerstone of his winning investment strategy as he states, “There is nothing wrong with getting rich slowly”. Here are our top 9 recommendations to improve your financial success:   1.   Use debt wisely.   This is..

Tax Compliance Alert - 1099 Filing Deadline     If you think you may have a requirement to file 1099s for 2021, here is some helpful information regarding the filings and deadline.   The IRS is focusing heavily on taxpayer compliance with information reporting laws.   Beginning with tax year 2020, the IRS has revised Form 1099-MISC and created a new form, Form 1099-NEC, for reporting non-employee compensation and attorney fees (NEC). Form 109..

The Social Security announcement is big news! It is quite rare to see a large amount like this. In 1975, Congress initiated the automatic annual COLAs. This is the biggest Cost of Living Adjustment since 1983 when it was 7.4%. In fact, there were three years that the benefits hadn’t been raised at all!  In contrast, in 2021 the increase that went into effect was 1.3%. The COLA amounts depend on the CPI-W (Urban Wage Earners and Clerical Worker..

1. Realized Retirement is more expensive than expected.   Wished they had started saving earlier and more aggressively.  Used the power of compounding interest to allow savings to grow.  Had amounts deducted directly from their paycheck to retirement plans/savings and, if they had their own businesses, paid themselves first. 2. Focused on financial and physical fitness.  They recognized that keeping finances and health in good shape leads to ..

If you think you may have a requirement to file 1099s for 2020, here is some helpful information regarding the filings and deadline. The IRS is focusing heavily on taxpayer compliance with information reporting laws. Beginning with tax year 2020, the IRS has revised Form 1099-MISC and created a new form, Form 1099-NEC, for reporting non-employee compensation and attorney fees (NEC). Form 1099-MISC will still be used to report miscellaneous paymen..

As we reach the end of the year, one of the questions we get the most is what Arizona charitable contribution credit donations can be made.  In August of 2018, the tax law changed, so you can no longer deduct these contributions on your federal tax return.  Even if you aren’t going to benefit from the federal deduction, you may still believe that it is worthwhile to make a contribution to an AZ tax credit charity while getting a dollar for do..

Dear Friends and Clients, In March, I had to bring home my college boy because his university was exercising caution and having all students leave campus to avoid the spread of the Coronavirus.  We appreciated this as we want him to be safe and healthy and were very happy to have him home.   As the university still expected their tuition bill to be paid, I paid it at the end of March from his 529 plan.  His university, like many across the co..

Dear Friends and Clients ,   With the passage of the CARES Act last week there are now two major pieces of legislation that were passed to help ease the strain on individuals, employees and employers due to the COVID-19 Pandemic. We are breaking this down into two parts.   Part I will cover the main provisions enacted under the Families First Act. This covers what employers need to know and how it affects employees.   Part II will cover the ma..

Dear Friends and Clients ,   With the passage of the CARES Act last week there are now two major pieces of legislation that were passed to help ease the strain on individuals, employees and employers due to the COVID-19 Pandemic. We are breaking this down into two parts.   Part I will cover the main provisions enacted under the Families First Act. This covers what employers need to know and how it affects employees.   Part II will cover the ma..

I started out in the Financial Services Industry as a young college intern at a big brokerage house back in the late 80’s.  My job entailed answering phones and cold calling for brokers who sat at their desks with their feet up, smoking cigars.  It was most definitely a male dominated industry.  Learning about the stock market and investments can be overwhelming for anyone but can be especially intimidating when you are a young woman.  For ..

The IRS has begun focusing heavily on taxpayer compliance with information reporting laws. Congress has sharply increased the penalties for compliance failures regarding the filing of Form 1099-MISC, Miscellaneous Income. The penalty for each Form 1099 missed is now $50 per return within 30 days of the due date, $110 per return before August 2 nd , $270 per return after August 1. For the intentional failure to file a Form 1099, the maximum penalt..

On December 20, 2019, the President and Congress passed into law the Further Consolidated Appropriations Act, 2020, including the SECURE Act of 2019. Short for Setting Every Community Up for Retirement Enhancement , the Act contains several provisions that are important to know when considering your tax and financial planning. Here is a short summary of some of the changes: Required Minimum Distribution Age One of these changes increases the age ..

December is always a good time to evaluate your tax situation and see what you can do to lower your taxes. 2018 brings extensive changes as a result of the large tax overhaul passed by Congress last December. Here’s a quick recap of some of the more significant changes and some thoughts on how to reduce your tax bill. One of the biggest items in the tax reform is lower tax rates. In general, but not always, tax rates will be lower across the bo..

December is always a good time to evaluate your tax situation and see what you can do to lower your taxes.  This year is no different but with the potential tax reform it is more important than usual. With the recent passage of tax reform bills in the house and the senate, Congress is now working on what the final law will be.  We think it is likely that a tax reform bill will pass this year, but there may not be a lot of time to react by the t..