Final regs. provide roadmap for taxpayers on the Roth IRA bandwagon

Article Abstract:

Section 408A of the Tax Reform Act of 1997 (TRA '97) stipulates that contributions to Roth individual retirement accounts (IRAs) are not tax deductible but qualified distributions are. The latter are payments made after the individual attains the age of 59 1/2, attributable to the individual's disability or made to a beneficiary. The Roth IRAs were passed as part of TRA '97 to give eligible taxpayers a back-loaded alternative to traditional IRAs. Contribution limits imposed on traditional IRAs also apply to Roth IRAs and are further reduced by amounts contributed to a traditional IRA. Roth IRAs also have an AGI-based limitation to determine eligibility to make contributions. Joint filers have an AGI limitation of $150,000 while single and head-of-the-household filers are limited to $95,000.

Commercial Banks, Investment Banking and Securities Dealing, Bank Individual Retirement Accounts, Personal Income Tax Deductions, Personal income tax, Individual retirement accounts, Tax exemption, Tax exemptions

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IRS is ungiving of deductions for charitable split-dollar insurance

Article Abstract:

The IRS has notified taxpayers and exempt organizations of possible tax issues that could arise with charitable split-dollar life insurance arrangements. These transactions are typically used as a form of executive compensation but can also be used in other contexts. The IRS has prohibited charitable contribution deductions within the split dollar context for two reasons. One, the taxpayer in such an arrangement does not have the intention to make a donation when giving funds to charity. Two, Sections 170(f)(3) and 2522(c)(2) of the tax code provide that charitable deductions cannot be taken for the transfer of a partial interest in property. A split dollar transaction involves the transfer of partial interest in a life insurance policy to charity.

Tax Law, Tax Deductions & Exemptions, Insurance carriers, not elsewhere classified, Insurance NEC, Other Direct Insurance (except Life, Health, and Medical) Carriers, Insurance, Charitable contributions, Charitable donations, Split-dollar life insurance, Split dollar life insurance

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Trio of child credits are distinct and complex tax breaks

Article Abstract:

The author discusses difficulties involved with the earned income tax credit, child tax credit, and child and dependency care credit.

United States, Children, Earned income tax credit, Child care tax credits

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