From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com The 2017 TCJA added even more pressure for a shareholder to minimize salary payments out of an S corporation because the 20% QBI deduction is calculated using profit after shareholder wages. The shareholder wants to minimize wage payments and maximize profit distributions because: 1. FICA tax savings 2. Worker’s compensation savings 3. Avoidance of the .9% Medicare surtax on wage income >$200,000 4. Incr

From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com The 2025 maximum Roth contribution is $7,000, plus an over age 49 catch-up of $1,000. However, the taxpayer must have earned income of at least the amount contributed and the taxpayer’s total adjusted gross income must be less than roughly $150k single and $236k joint. A. Convert an existing pre-tax IRA (or other retirement account) to a Roth. There is no dollar limit on this idea, but the entire amount

From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com Background Under the tax code prior to the Tax Reform Act of 1986, taxpayers could deduct most personal interest expenses, including interest paid on auto loans, as itemized deductions. This changed with the Tax Reform Act of 1986 which eliminated the deduction of personal interest under IRC Sec. 163(h), including auto loan interest, credit card interest, and other non-business borrowing. Since 1987, aut

From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com As the author of our best-selling Social Security and Medicare manual, I receive hundreds of questions every year, and these are the top ten questions and answers, in no particular order. 1. At what age should I draw my benefit? No one can give you a “one-answer fits all” response. There are three factors involved in this answer: genetics, personal health and financial need. Keep in mind that the Soci

From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com The title of this post will develop an earthquake of worry in the stable ground of retirement planning. The answer is unknown of course, but precedent does exist for making Roth accounts fully or partially taxable by looking at what Congress did with Social Security. A Synopsis of the Taxation of Social Security Benefits When the Social Security system began over eighty years ago, the receipt of Socia