Tuesday, December 12, 2017

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Tax Planning & Preparation

Tax Planning & Preparation

The world of tax legislation is always changing. Whether your tax needs are simple, or complex, relate to individual or business, or compliance or consulting, at Yoss & Allen, we will do our best to provide the tax planning and preparation services that meet your needs.

About Our Services

About Our Services

As a full-service accounting firm, we provide complete outsourced accounting, payroll, tax planning and preparation, QuickBooks start-up and implementation, elder financial care, assurance (compilation & review), estate & trust, non-profit, and high net worth client services.

About Our Firm

About Our Firm

Yoss & Allen (Y&A) is the longest established Certified Public Accounting firm in Claremont, California, providing distinguished professional services since 1945. After 70 years of service to the Claremont community, the faces and names may have changed, but the vision has not.

Our

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Do you or a loved one need assistance performing some or all of your day-to-day financial activities? To learn more about the services we can provide for you, visit Our "Elder Care" page, under Services above.  

  • Tax Planning & Preparation

    Tax Planning & Preparation

  • About Our Services

    About Our Services

  • About Our Firm

    About Our Firm

  • Our

    Our "Elder Care"

Welcome to Yoss & Allen

Yoss & Allen is a client-driven accounting firm with a proactive, hands-on approach, and a qualified team of associates. We pride ourselves in having the resources, expertise, and willpower of a Big Four, with a keen responsiveness and accessibility of a local accounting firm. 
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If you are looking for personalized services from a firm that truly cares about your current and future financial needs, we encourage you to give us a call today.


~Important News from Yoss & Allen~

Tax Preparedness Series: Most Retirees Need to Take Required Retirement Plan Distributions by Dec. 31

WASHINGTON — The Internal Revenue Service today reminded taxpayers born before July 1, 1945, that they generally must receive payments from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31.

Known as required minimum distributions (RMDs), these payments normally must be made by the end of 2015. But a special rule allows first-year recipients of these payments, those who reached age 70½ during 2015, to wait until as late as April 1, 2016 to receive their first RMDs. This means that those born after June 30, 1944, and before July 1, 1945, are eligible for this special rule. Though payments made to these taxpayers in early 2016 can be counted toward their 2015 RMD, they are still taxable in 2016.     

This is the second in a series of weekly tax preparedness releases designed to help taxpayers begin planning to file their 2015 return.

The required distribution rules apply to owners of traditional, Simplified Employee Pension (SEP) and Savings Incentive Match Plans for Employees (SIMPLE) IRAs but not Roth IRAs while the original owner is alive. They also apply to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans.

An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount on Form 5498 in Box 12b. For a 2015 RMD, this amount is on the 2014 Form 5498 normally issued to the owner during January 2015.

The special April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, for example, a taxpayer who turned 70½ in 2014 (born after June 30, 1943 and before July 1, 1944) and received the first RMD (for 2014) on April 1, 2015 must still receive a second RMD (for 2015) by Dec. 31, 2015. 

The RMD for 2015 is based on the taxpayer’s life expectancy on Dec. 31, 2015, and their account balance on Dec. 31, 2014. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Use the online worksheets on IRS.gov or find worksheets and life expectancy tables to make this computation in the Appendices to Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

For most taxpayers, the RMD is based on Table III (Uniform Lifetime Table) in IRS Publication 590-B. So for a taxpayer who turned 72 in 2015, the required distribution would be based on a life expectancy of 25.6 years. A separate table, Table II, applies to a taxpayer whose spouse is more than 10 years younger and is the taxpayer’s only beneficiary.

Though the RMD rules are mandatory for all owners of traditional, SEP and SIMPLE IRAs and participants in workplace retirement plans, some people in workplace plans can wait longer to receive their RMDs. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions. See Tax on Excess Accumulations in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.

Find more information on RMDs, including answers to frequently asked questions, on IRS.gov.

IR-2015-122, Oct. 29, 2015

Changes to Methods of Claiming Social Security Benefits

PPC
Five-Minute Tax Briefing®
November 10, 2015
No. 2015-21

File and Suspend Method of Claiming Social Security Benefits to Be Eliminated: The Bipartisan Budget Act of 2015 (H.R. 1314—the Act), signed by President Obama on 11/2/15, eliminates the file and suspend method, a popular strategy used by married couples to maximize their lifetime Social Security benefits. Under this approach, a higher earning spouse claims benefits at his full retirement age (currently age 66) but suspends the benefits until a later date (e.g., at age 70 or sooner, if desired), allowing the Social Security credits to continue to grow. The lower earning spouse claims benefits based on the higher earning spouse's earning record, which are more than the benefits based on his or her own earnings record. In a provision labeled "closure of unintended loopholes," the Act effectively eliminates this opportunity for claims filed after 4/30/16 (180 days after enactment). [Editor's Note: Those who've been using this method or other eligible individuals who file to claim benefits under this method within the next 180 days should not be affected.] [Bipartisan Budget Act of 2015, Section 831(b).]

Restricted Application Method of Claiming Social Security Benefits to Be Eliminated: The Bipartisan Budget Act of 2015 (the Act) also eliminates the restricted application method (sometimes called the claim some now, claim more later method) for claiming Social Security benefits by married couples. Under this strategy, a spouse reaching full retirement age who is eligible for both a spousal benefit (based on his or her spouse's earnings) and a retirement benefit (based on his or her own earnings) could file a restricted application for spousal benefits only, then delay applying for retirement benefits based on his or her own earnings record (up until age 70). This would allow the Social Security credits to continue to grow. For those who turn 62 after 2015, the Act eliminates the ability to file a restricted application for only spousal benefits. [Editor's Note: Individuals who are age 62 or older in 2015 should still be able to use the restricted application method for spousal benefits only upon reaching full retirement age.] [Bipartisan Budget Act of 2015, Section 831(a).]

Source: 2015 Thomson Reuters/PPC

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