401(k) plans are under attack, primarily due to the tax expenditure of this retirement benefit. It is estimated that $70.2 billion per year is lost revenue to the IRS each year and that over a five year period, the expenditure is $361 billion. The pension industry is clearly a target by the IRS.
When its time to sell
One of the toughest decisions a business owner will ever make is to sell his or her company. Sometimes sales are forced, as in the event of financial distress, bankruptcy, or an owner’s unplanned departure. But in most cases, owners must carefully assess their company’s financial and competitive position and determine the best time to sell, given their own future plans. Success — a smooth transaction, good terms and a fair price — largely depends on how well you’ve prepared for this important event.
Life isn’t always easy
In recent years, hardship distributions have become a more commonly used feature in 401(k) Plans. This article summarizes the requirements for offering hardship distributions to participants.
By David E. Bremer, CPA, CFP®, PFS
I am pleased to announce the acquisition of the Cornerstone Capital Management LLC Private Client Group and the addition of Thom Berkowitz to our team. It’s an exciting time for us as we continue to position our firm to meet the multi-generational needs of our clients.
Cornerstone Capital Management LLC is an Edina-based money management firm who recently entered into a partnership with New York Life that is expected to significantly increase their institutional investment business. According to Andrew Wyatt, CEO of Cornerstone, “We recognized that the resources needed to successfully serve our Private Clients are different from those needed for our institutional investors, which has become the biggest part of our business. Therefore, we made the decision to introduce our individual and family clients to Boulay, knowing they will have access to the services best suited to meet their needs.”
On January 2, 2013 we began the transition of approximately 60 clients from Cornerstone Capital Management LLC to Boulay Financial Advisors, LLC. We have enjoyed getting to know the clients and are finding that their wealth management needs are a great match for the depth of resources we have to offer.
Thom Berkowitz will provide continuity of service for the new Private Client Group clients. Thom has over 40 years of wealth management experience and brings a healthy mix of common values, similar investment philosophies and new ideas to our firm. Adding Thom to our team complements our existing strengths as we help clients “get there” by building, preserving and transferring wealth.
by Mike Crabtree, JD, CPA
Legislation was introduced on February 18th that would create a “snowbird” tax in Minnesota, extending the Minnesota Individual Income Tax to nonresidents who are present in the state for more than 60 days but less than 183 days and maintain an abode in Minnesota for at least 6 months. Current Minnesota law treats those whose principal residence is in another state as Minnesota residents for income tax purposes if they have an abode in Minnesota and are present in Minnesota for 183 days or more during the year.
People who fall into the new category created by the proposed legislation would be treated as part-year residents and would be subject to Minnesota Income Tax on a pro-rata portion of their non-Minnesota income, based on the number of days that they are in the state (nonresidents are already subject to Minnesota tax on their Minnesota-source income). A tax credit would be available for income tax paid to another state on the same income, if that other state did not give a credit for the income taxes paid to Minnesota. The proposed legislation also includes an exception for days spent in the state for purposes of obtaining medical treatment for the taxpayer or a child, parent or spouse of the taxpayer.
The proposed snowbird tax is estimated to bring in $15 million of additional revenue each year if it becomes law. It would apply beginning in 2013, but days occurring before the date of final enactment would not be counted.
To learn more about Is There a “Snowbird” Tax in Your Future? please contact a Boulay advisor at 952.893.9320 or email@example.com.