Retirement Plan and IRA Rollovers

The following video is from the IRS.

Did you know that you can move funds from your Individual Retirement Arrangement and retirement plan to another IRA or plan? There are two ways to do so: you can have the funds directly transferred from one account to another IRA account or plan, or you can have a check sent directly to you.

If you have a check sent to you, you only have 60 days to deposit that check into the other IRA or retirement plan. If you miss the deadline, you may have to pay tax on the distribution, and you may have to pay an additional 10% tax on early distributions.

However, if you miss the 60-day deadline due to circumstances beyond your control, such as an error made by a financial institution, you could be eligible for a waiver. You can even use the model letter on to self-certify that you’re eligible for a waiver.

For more information for rolling over an IRA or retirement plan, go to For information about waivers, scroll down to FAQs relating to waivers of the 60-day rollover requirement.

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Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

The following article was published by the IRS.

passport-2642172_1280The Internal Revenue Service has reiterated its warning that taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. To avoid delays in travel plans, taxpayers need to take prompt action to resolve their tax issues.

In January of last year, the IRS began implementing new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act. The law requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt, which is $52,000 or more. The law also requires State to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit ability to travel outside the United States. Continue reading

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Financial Rules for Living Together

For many, getting married is just a part of life. But the percentage of those that choose to simply live together and forgo the formality of marriage is on the rise. If you are one of those who prefer simply to live with your partner, here are some facts to consider:

When buying a house, it may not be a wise idea for one to simply buy the house while the other pays. Keep in mind, the house will belong to the person with the name on the deed. If you aren’t married, the law doesn’t make an exception or offer any protections to you financially. Verbal agreements don’t matter; if you’re not on the deed, you don’t own the house. Continue reading

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Here’s What Taxpayers Should Do to Protect Private Data

The following article was published by the IRS.

finger-2081169_1280Taxpayers should protect their personal and financial data from criminals who continue to steal large amounts of information. Thieves use the data to file bogus tax returns and commit crimes while impersonating the victim.

All taxpayers should follow these steps to protect themselves and their data.

Keep a secure computer. Taxpayers should:

  • Use security software that updates automatically. Essential tools for keeping a secure computer include a firewall, virus and malware protection, and file encryption for sensitive data.
  • Treat personal information like cash; don’t leave it lying around.
  • Give personal information only over encrypted and trusted websites.
  • Use strong passwords and protect them.

Continue reading

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Pay Yourself First

Saving money is important, and paying yourself first is one of the best ways to accomplish that. This allows you to set money aside for emergencies, and even plan for long-term goals.

But not everyone knows the best way to save. It is easy to get caught up paying bills and expenses, and forget that the most important person to pay is yourself. That’s why it is so important to create a savings plan that works for you. Saving, in general, can be difficult, so make sure you set a financial goal. Then figure out how much you will need to save to reach that goal. Continue reading

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Disaster Resources can Help Taxpayers Weather the Storm

The following article was published by the IRS.

key-west-81664_1280As summer approaches, so do storm and other natural disasters. Whether it’s a hurricane, fire, flood or tornado, it’s important for people to be prepared. One way to get ready is for taxpayers to know what to do about important documents and paperwork that might be lost after a disaster.

Also, it’s good to know how to find out if the IRS is providing filing extensions or other tax relief due to the impact of a federally-declared disaster. Below are links that taxpayers can use to find IRS tax related disaster relief:

Reconstructing records after a disaster; IRS provides tips to help taxpayers
This fact sheet helps people who are facing the challenge of reconstructing their financial records after a disaster. This may be essential for properly documenting a tax-deductible loss, supporting various tax-related transactions or getting federal assistance, or insurance reimbursement. Continue reading

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Mistakes Homebuyers Make

Buying a house can often be an intense, emotional decision. But it’s also one of the biggest purchases you will likely ever make, so it’s important that you don’t make a big mistake when you do.

Here are some big mistakes to avoid:

  1. Not getting financing up front. Unless you are a cash buyer, don’t even consider house shopping until you have a firm commitment from a lender.
  2. Using an inexperienced or incompetent agent. Having the right agent can make a huge difference in your home buying process. Using a proven and experienced agent can help you determine a house’s value more accurately, as well as show you all the houses in the area that meet your criteria.
  3. Not getting an inspection. Don’t even think about buying a house without an inspection, and include a potential out based on that inspection.
  4. Not having a backup plan. If the house doesn’t appraise properly or if the inspection reveals insurmountable problems, be sure you have planned on a way to get your deposit back.

Continue reading

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