A spousal lifetime access trust (SLAT) is an irrevocable trust that authorizes the trustee to make distributions to a spouse if a need arises. It can be designed to benefit one's children, grandchildren or future generations. A lifetime gift tax and a generation-skipping tax exemption can be used to shield contributions to the trust and future appreciations from transfer taxes.
An IRS audit reviews and examines an organization's or individual's accounts and financial information to ensure it's reported correctly according to tax laws and to verify the reported amount of tax is correct.
Legislation signed in March allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes.
Per the Internal Revenue Service (IRS), fringe benefits are taxable and must be counted in the recipient's gross wages, unless the item is specifically excluded by law.
The Employee Retirement Income Security Act of 1974 — better known as ERISA — is, according to the Department of Labor, "a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans." These typically include traditional pension plans, 401(k) plans, deferred-compensation plans and profit-sharing plans.
The buying and selling of homes are the largest financial transactions you may make, and as with most financial transactions, there's a tax angle. If you know what your tax implications are as you go into the deal, you're better able to plan and avoid unpleasant surprises.
Both individuals and the companies they work for continue to explore new ways to address the finances of retirement. One option is the cash balance plan. It works like a pension plan in that workers can get a lifetime annuity. However, unlike a pension plan, a cash balance plan creates an individual account for each covered employee, complete with a specified lump sum. And it offers potential savings for employers.
Leave-sharing programs allow employees with unused leave to donate or share their time off with employees who have exhausted their own accrued leave.
A Medicaid asset protection trust allows a person to qualify for long-term care benefits from Medicaid while protecting assets from being depleted if long-term care is needed.
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