Issue 40.10
There was a time when I could hold my oldest son, Paul, in my arms and rock him to sleep. After what seemed like only a week, he was too big to lift up anymore. Time passed quickly and he was dating. Now, he’s married and has a little one of his own. It all happened in the blink of an eye.
Time flies, doesn’t it? Here we are in September and it seems only yesterday that I sat down in my home office and scribbled down my New Year’s Resolutions. The reason I bring this up is because January 1, 2011 is almost upon us.
There are three big changes coming in 2011 and I want you all to be aware of them:
First – This year only, the income restrictions on IRA to Roth IRA conversions have been lifted. This gives you the opportunity to pay taxes on your retirement income before taxes skyrocket. On top of that, you’re able to split your tax payment into two payments by paying half in 2011 and half in 2012.
Second – The repeal on estate tax ends January 1, 2011, and estate tax will come back as high as 55% on estates over $1 million.
Last – Keep in mind that at the start of the New Year, the tax rates that you’re currently paying on dividends and capital gains will also be raised. The dividends tax will more than double.
Three months remain before the New Year. You have the power in your hands to protect yourself and your assets from these major changes. Sit down with a financial advisor and go over the options you have to reduce your taxes.