Author Archives: Nancy Hecht

They may be little red flags, but they are red flags none the less.

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Have you noticed small changes when talking to your parents? Nothing big, just little mentions about almost getting the power turned off because they forgot to pay the bill. Your Dad tells you they got a letter from the IRS stating they now have to pay penalties for not filing their tax return. You go visit them and notice that their desk is piled high with papers, a sight you normally do not see. You glance at their checkbook and see errors in an account that was once flawless. These may be signs of diminished capacity or the beginnings of Alzheimer’s disease.

One easy thing you can do to protect your parents is to meet their Certified Financial Planner Professional, their CPA, attorney, and banker. You can asked to be contacted if your parents start exhibiting odd behavior, like going to the bank three days in a row to withdraw the same amount of money, or suddenly changing how they have their assets invested. You don’t need to be called upon for every meeting or decision they make, but, it is nice to know that your parents will have you for their financial professionals to reach out to if a red flag pops up.

disclosures:http://www.hechteffect.net/?page_id=31

More good news from the IRS

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Many of us like the idea of a Roth IRA but cringe at the thought of converting a Traditional IRA to have one. No one really likes to pay taxes any sooner than required. Now the IRS has finally cleared up the rules on transferring from a 401(k) account to a Roth IRA.
Taxpayers can split off their after-tax money in their 401(k) account and send it directly to a Roth IRA.
Roth IRA accounts, under current tax law, accumulate interest on a tax free basis and do not require minimum distributions at age 70.5. This account may be the answer for your after-tax deposits in your 401(k).

disclosures:http://www.hechteffect.net/?page_id=31

You want to make a Charitable Gift but don’t know where to get the funds…

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I have good news for you. H.R.4719 has had some of the provisions permanently extended. Especially the provision that allow for tax-free distributions from individual retirement accounts (IRAs) for charitable purposes.
Most of us have the largest amount of investments in our IRA accounts. You can make a direct transfer from your IRA to qualified 501(c) 3 charities, not pay tax on the distribution, and help make your chosen charity happy.
A win-win for all!

disclosures:http://www.hechteffect.net/?page_id=31