Last week the Supreme Court made marriage equality legal for the whole country, a decision I applaud. If you are a regular reader of my blogs, you know that I am very tax adverse. This landmark decision has now made tax filing more complicated.
If you got married but do not live in a state that recognizes same sex couples, you can file a joint federal tax return. As for your State tax return, you must still continue to file two separate tax returns. Your accountant will be happy.
It is all about baby steps – tax reform does not come easily.

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We are all familiar with the required minimum distributions from our qualified accounts being taxed in retirement, but did you realize you will also have to pay tax on these income producers too:
Equity Investments:
Profits from the sale of investments or the capital gains earned will be taxed at capital gains rates, even in retirement. The good news is capital gains rates are generally lower than ordinary income rates.
Social Security Income:
Most retirees are shocked to learn that part of their Social Security benefits could be taxable. Depending on when you take your Social Security and what your provisional income is, will determine if part of your Social Security is taxable at ordinary income rates.

Pensions:
While pension income does not count against you when calculating your Social Security incomes, payments from private & government pensions are taxed at ordinary income rates.

Tax planning is an important part of our financial lives – our whole financial lives.

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I happen to think that “file & suspend” is a great benefit currently available through the Social Security system. It may not be around for long. There is a push to eliminate this option because it will:
Reduce some of the rules associated with Social Security
It would make the system “fairer”
It would “restore some of the redistributive” aspects of the benefit structure.

Many of my clients have used this strategy of one spouse filing for Social Security at full retirement age and immediately suspending their payments so their spouse can draw the Spousal benefit. Individuals who do not take their Social Security benefits at full retirement age but suspend payments until age 70 currently get an annual increase of 8%.

I feel that there are many other areas of Social Security abuse that can and should be attacked before doing away with this benefit.

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http://abcnews.go.com/Politics/wireStory/government-paves-multiemployer-pension-plan-cuts-31829134

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http://bit.ly/1Igr7d6

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When a spouse dies, most often the surviving spouse simply rolls the decedents IRA into their own. This works great if you are over 59.5 yrs. old. Recently, I met with a widow who is only 57 and needs income. She told me she wanted to receive her husband’s IRA as an inherited IRA; I have never seen this done by a spousal beneficiary before. Generally, inherited IRA accounts are opened when a non-spousal beneficiary receives an IRA due to death of the owner.
It turns out that a spouse can open an inherited IRA also, take withdrawals immediately, and avoid the 10% early withdrawal penalty.
I love learning new things – don’t you?

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http://cflwomensjournal.com/nancy-hecht-certified-financial-group-inc

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Here is the article I was interviewed for.

http://www.cnbc.com/id/102695798

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When kids graduate from high school or college a lot changes in a family. With high school graduation, you may have more expenses associated with college; with a college graduation, it may become “empty nest” time. These are big changes for the parents as well as the students. We see an increase in divorce, as well as downsizing, at graduation time.
I always feel that change is good and moving is often one of the biggest changes. If you are moving due to divorce, there is much more to consider than downsizing. Your family will now be maintaining two homes and, obviously, this will cost more. You must also consider how to divide furniture, family keepsakes, and how to maintain a place for your kids when they come home. When downsizing, the changes are often easier, as well as less stressful.
In either case, please talk to your kids about what keepsakes they want, where you plan to live, and who will live where (or have a spare room), when home on breaks or for a visit.
Selling your family home is a big deal and big change for everyone in the family

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