G.R. Reid Consulting Services, LLC
Retirement
A Recent Survey Revealed That Many Affluent Retirees Would Go About Saving for Retirement Differently If They Had To Do It Again.
Most notably, these wealthy retirees expressed a desire for more professional help in preparing for retirement. In fact, 55% of survey respondents regretted that they didn’t start talking to a financial professional earlier.1 Savvy investors can learn from the mistakes of others. With the uncertainty surrounding income taxes, capital gains taxes, and the estate tax, the value of a professional opinion may be more important now than ever.
Retirement Wake-Up Call
According to the survey, the most recent recession gave many affluent retirees pause to reconsider their approach to retirement. About half of the retired respondents wish they had spent more time thinking specifically about the lifestyle they wanted in retirement. Furthermore, they recommended that those nearing retirement take the time to consider exactly how they would like to live out their later years. 2
Have You Thought About Your Ideal Retirement Lifestyle?
Think about the specifics. Will it be in the same house and town? What activities will fill your days? Golf? Travel? Now consider what it’s going to take financially to get you there. A review of your situation can help connect the dots between your current situation and the retirement lifestyle you desire. About half of the retirees surveyed said they wish they had concentrated more on “the numbers.” 3 A focus on the details of preparing for retirement can be an eye-opening exercise.
Remember also that retirement planning is not a fix-it-and-forget-it proposition. It might be appropriate to take a second look periodically as life changes could necessitate modifications to a retirement strategy. How has your vision of retirement changed over the years? Is it time to run “the numbers” again?
You’ve Already Gone Pro
What’s the takeaway from all of this, given that you are already working with a financial professional? There is no assurance that working with a professional will improve your investment results. But by focusing on your overall objectives, a financial professional can provide education, identify strategies for taking control of many situations, and help you consider options that could have a substantial effect on your long-term financial goals.
Please call G.R. Reid Consulting LLC for a retirement evaluation, 631-923-1595.
The above information was supplied by Emerald Connect, Inc. All rights reserved © 2011. This material may not be reproduced without permission.
1–2 Investment News, January 18, 2010 3 The Wall Street Journal, January 15, 2010
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Unless specifically stated otherwise, the written advice in this memorandum or its attachments is not intended or written to be used for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. Information is time sensitive, educational in nature, and not intended as investment advice or solicitation of any security. The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal income tax penalty. You are encouraged to seek tax or legal advice from an independent professional advisor. G.R. Reid Consulting Services, LLC is not a registered investment advisor and is independent of American Portfolios Financial Services Inc. and American Portfolios Advisors Inc.
Showing posts with label G. R. Reid Consulting Services. Show all posts
Showing posts with label G. R. Reid Consulting Services. Show all posts
Wednesday, November 30, 2011
Wednesday, October 26, 2011
Human Resource Services News
W2 Reporting Requirements
:: Deidre Siegel
Director, Human Resource Services
G. R. Reid Consulting Services, LLC
Read about G.R. Reid Human Resource Management Tools
The W2 reporting requirements for large employers will change for the 2012-year, filed in 2013. Employers with more than 250 employees will be required to report the cost of group health care coverage provided to employees. Employers with less than 250 employees will be required to report health care coverage costs in the 2013-year, filed in 2014. In addition to the small employer exception for 2012, the following additional exceptions will be in effect:
Employers are required to report the costs for the covered employee plus the employer cost for any covered dependent and the amount paid by the employee on a pre-tax or after-tax basis. This includes FSA as well if the employee’s health FSA for the plan year exceeds the salary reduction election for the plan year when an employer contributes to the FSA Plan. For example, if an employee elects to contribute $700 to the FSA Plan and the employer matches it, then the employer contribution of $700 must be reported.
The IRS notice also indicates that if the employer charges the same rate to all employees regardless of the scope of coverage, it can report that same cost for all employees. If the employer charges rates based on a coverage tier, the employer can report the same cost for each coverage tier.
In addition, if a former employee has continued coverage for the year under COBRA, this should also be reported on the W2. The IRS Notice states that the cost of coverage must be determined on a calendar year, therefore some COBRA rates will need to be converted to a calendar year amount for purposes of reporting the costs. If a former employee requests a W2 prior to the end of the calendar year, the employer is not required to include the cost of the coverage on the midyear W2.
Lastly, if dental and vision plans are separate coverages and not included within the health plan, these do not need to be reported on the W2. The reporting is solely for health plan coverage and FSA plans when applicable.
The aggregate employer cost is reported in Box 12, using code DD. This reporting is for information only and does not make such amounts taxable.
For further information on the W2 reporting notice, you may visit http://apps.irs.gov/pub/irs-drop/n-11-28.pdf
Director, Human Resource Services
G. R. Reid Consulting Services, LLC
Read about G.R. Reid Human Resource Management Tools
The W2 reporting requirements for large employers will change for the 2012-year, filed in 2013. Employers with more than 250 employees will be required to report the cost of group health care coverage provided to employees. Employers with less than 250 employees will be required to report health care coverage costs in the 2013-year, filed in 2014. In addition to the small employer exception for 2012, the following additional exceptions will be in effect:
- An employer that contributes to a multi-employer plan is not required to report any coverage costs for such plan
- Indian tribal governments are not required to report
- A self-insured church plan that is exempt from federal health continuation requirements is also not required to report the amount of coverage on the W-2
- The cost of coverage provided by a government entity for the benefit of military members and their families is not subject to reporting.
Employers are required to report the costs for the covered employee plus the employer cost for any covered dependent and the amount paid by the employee on a pre-tax or after-tax basis. This includes FSA as well if the employee’s health FSA for the plan year exceeds the salary reduction election for the plan year when an employer contributes to the FSA Plan. For example, if an employee elects to contribute $700 to the FSA Plan and the employer matches it, then the employer contribution of $700 must be reported.
The IRS notice also indicates that if the employer charges the same rate to all employees regardless of the scope of coverage, it can report that same cost for all employees. If the employer charges rates based on a coverage tier, the employer can report the same cost for each coverage tier.
In addition, if a former employee has continued coverage for the year under COBRA, this should also be reported on the W2. The IRS Notice states that the cost of coverage must be determined on a calendar year, therefore some COBRA rates will need to be converted to a calendar year amount for purposes of reporting the costs. If a former employee requests a W2 prior to the end of the calendar year, the employer is not required to include the cost of the coverage on the midyear W2.
Lastly, if dental and vision plans are separate coverages and not included within the health plan, these do not need to be reported on the W2. The reporting is solely for health plan coverage and FSA plans when applicable.
The aggregate employer cost is reported in Box 12, using code DD. This reporting is for information only and does not make such amounts taxable.
For further information on the W2 reporting notice, you may visit http://apps.irs.gov/pub/irs-drop/n-11-28.pdf
Life, Disability & Long Term Care Insurance Services
Uncovering the Mysteries of Whole Life Insurance
: : Roland A. Vitanza, J.D.
Specialist in Life, Disability and Long Term Care Insurance
631.923.1595 ext. 342
G.R. Reid Consulting Services, LLC
This article will focus on several factors which make Whole Life Insurance a dynamic asset to any family protection plan. In the last discussion of Whole Life Insurance we glossed over the main benefits of A whole life insurance policy; now I will discuss the strengths of Whole Life Insurance that are not so obvious to the everyday American.
The growth of cash value inside of the life insurance policy is deferred from taxation while the funds remain in the policy, making whole life insurance a wealth protecting instrument. During the insured’s life, cash values can be accessed under advantageous tax rules. This means that dividend withdrawals are tax-free up to the amount cumulatively pain in premiums. If a policy owner takes a loan against the life insurance policy, this will not create a taxable event, even if the policy may have a substantial gain in excess of paid premiums. A policy owner may have the policy pay for itself by using dividends received to pay the premiums. This is a tactic that can be used at any time by the policy owner and the policy owner can also choose to stop this option and continue making premiums payments themselves. If a policy loan has been taken, the annual dividend can be used to pay back a policy loan. By taking a loan from the policy, the policy owner is avoiding the use of loan applications and having to deal with lenders and interest payments. That being said, a whole life policy may also be used as collateral to receive a loan with a favorable interest rate. This increases the value of whole life insurance exponentially.
Whole life insurance loans are paid back on a flexible schedule decided by the policy owner. If a policy owner wishes to pay back to the loan, then he may do so, and the death benefit will rise accordingly. Furthermore the policy owner will be able to continue to borrow from the policy at any time and if dividends received are allowed to accumulate within the policy the policy death benefit will grow helping to resist the eroding effects of inflation.
: : Roland A. Vitanza, J.D.
Specialist in Life, Disability and Long Term Care Insurance
631.923.1595 ext. 342
G.R. Reid Consulting Services, LLC
This article will focus on several factors which make Whole Life Insurance a dynamic asset to any family protection plan. In the last discussion of Whole Life Insurance we glossed over the main benefits of A whole life insurance policy; now I will discuss the strengths of Whole Life Insurance that are not so obvious to the everyday American.
The growth of cash value inside of the life insurance policy is deferred from taxation while the funds remain in the policy, making whole life insurance a wealth protecting instrument. During the insured’s life, cash values can be accessed under advantageous tax rules. This means that dividend withdrawals are tax-free up to the amount cumulatively pain in premiums. If a policy owner takes a loan against the life insurance policy, this will not create a taxable event, even if the policy may have a substantial gain in excess of paid premiums. A policy owner may have the policy pay for itself by using dividends received to pay the premiums. This is a tactic that can be used at any time by the policy owner and the policy owner can also choose to stop this option and continue making premiums payments themselves. If a policy loan has been taken, the annual dividend can be used to pay back a policy loan. By taking a loan from the policy, the policy owner is avoiding the use of loan applications and having to deal with lenders and interest payments. That being said, a whole life policy may also be used as collateral to receive a loan with a favorable interest rate. This increases the value of whole life insurance exponentially.
Whole life insurance loans are paid back on a flexible schedule decided by the policy owner. If a policy owner wishes to pay back to the loan, then he may do so, and the death benefit will rise accordingly. Furthermore the policy owner will be able to continue to borrow from the policy at any time and if dividends received are allowed to accumulate within the policy the policy death benefit will grow helping to resist the eroding effects of inflation.
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