Sunday, March 27, 2022

IRAs from a different perspective

It is not always necessary to accept the oddball ways that Congress and the IRS do things. At our 906LawTech page, we provide an alternative IRA distribution schedule and projection that gets rid of the "divisors" and simply uses percentages for each year's required minimum distribution. 

Wednesday, March 2, 2022

Michigan - state tax changes

At Bridge Michigan, a description of the proposed changes to state tax laws in the bill now passed by the House. These are still subject to negotiation and compromise. 

Saturday, February 12, 2022

New figures

 A new year brings updates in dollar limits. The IRS figures first: 

"Annual exclusion" for gifts               $16,000 

Estate/gift tax exemption equivalent  $12,060,000 

Recall that the per-year gift exemption relates to reporting requirements only. If one single person gives another single person $20,000, this exceeds the per-year exclusion, but does not trigger a gift tax liability so long as the exemption equivalent is not exceeded. What it usually requires is the filing of a gift tax report using Form 709. See the IRS instructions for that form. 

For persons dying in 2022, the new figures as certified by the Michigan Department of Treasury are: 


The first two figures differ depending on whether there are children from a previous marriage. 


Saturday, January 29, 2022

Unexpected

 She Bought Her Dream Home. Then a ‘Sovereign Citizen’ Changed the Locks.

https://www.nytimes.com/2021/09/26/nyregion/moors-newark.html

Early action

An early action when a loved one dies: go to his email account and set up an autoresponder. 

“John died on January 23. Please remove this address; contact jim@boxplanet.com with any questions.” 

Do this on his social media accounts, too. 

Thursday, September 2, 2021

Protect yourself

 The Federal Trade Commission's Consumer Information Blog is a good regular source of information about scams that people are reporting. Recent posts include: 

WARNING: Email from FTC Chair Lina M. Khan about Coronavirus money is fake

Phishing scheme targets unemployment insurance benefits and PII

Hot rental car market = scams

Saturday, April 24, 2021

Resources newly available online

 In July 2020, after nearly 40 years of active, full-time practice, I scaled back to part-time practice. I continue to work about half-time. 

I have spent some time updating and, in some cases, annotating some of the tools that I had been using in my practice, and they have now been posted online at tech.906law.net. With one exception, all are free for anyone to use. They include: 


2021 Tax Calculator (Excel) - There are times that you want to have a projection of what the overall tax burden will be, assuming a certain level of earned income. This calculator will give you that projection. 


IRA Calculator (Excel) - Assuming a specified value for an IRA, 401(k) plan, or other similar retirement plan, this will give you a projection of what the required distributions (RMDs) will be when they begin at age 72, and how the increases in value and drawdowns over the next three decades will affect its overall value. There are two versions included, one that begins at age 72 and another that begins as early as age 60 and tracks increases with or without distributions until the age 72. (Free for personal use, but subject to a $50 licensing fee when used by a planner to advise a client.) 


SECURE distribution calculator (Excel) - For IRAs (etc.) inherited by a designated beneficiary who is not subject to one of four specified exceptions, the amount in the account can no longer be distributed over the beneficiary’s life expectancy, but rather must be distributed over the ten years following the death of the IRA owner (or her surviving spouse in many cases). This calculator again plots out increases in value and drawdowns with yearly or occasional distributions. 


Digital and Online Inventory (Word) - A place to record email accounts, online accounts, web pages, domains, electronic access to bank accounts, investment accounts, credit cards, software registration, etc. with contact information and passwords.  


US LawNet - A directory of the sites and resources most useful to practicing lawyers in the states that it covers. This site had its origin in a personal web page that I developed for my own use in the mid-1990s, and later posted online as a “publicly-accessible private site” as www.michlaw.net. It has now been expanded to include ten states - five Great Lakes states and the five most populous states - and is publicly available for free use.  

IRAs from a different perspective

It is not always necessary to accept the oddball ways that Congress and the IRS do things. At our 906LawTech page, we provide an alternative...