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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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Does an Inheritance Belong in Your Estate Plan?
Getting money from a loved one can be great financial support for someone, but it can also raise plenty of questions for that recipient about the best way to handle it.
If you already have a financial plan set up, you’re likely saving for your own emergencies and retirement. An inheritance could help to supplement that.
It is usually not wise to rely entirely on the possibility of inheritance as your retirement plan or as a solution for paying off debt. This is because receiving an inheritance is never guaranteed, and typically, the amount that is gifted to others in an inheritance is not enough to fund a substantial retirement.
However, statistics do support that most Americans will receive some type of inheritance throughout their lives, and it can be a good way to supplement your own retirement savings. If you already know, for example, that you will receive an inheritance, telling your financial advisor about this puts you in a good position to know what to do with the money when you receive it.
If the person who has architected the inheritance has done the right planning, the best part of receiving these funds is that it may be tax-free. You’ll need to consult with a financial professional if you’re thinking about leaving behind an inheritance to someone or if you are scheduled to receive an inheritance and are concerned about the estate tax implications.
Contact a qualified estate planning lawyer and consider involving other financial professionals in your strategy for handling these complex situations. While receiving an inheritance can be a significant financial boon to you, knowing what to do and how to plan for it can be challenging.