Reuters Money

IRS caps retirement contributions for 2011

October 28, 2010

Employee contributions to 401(k) and 403(b) plans will be capped at $16,500 in 2011, the same amount they were set at for 2009 and 2010, the Internal Revenue Service announced. The levels are unchanged for the same reason that Social Security recipients won’t see a cost of living increase next year: inflation is too low to trigger an increase.

Mandatory IRA withdrawals are back in 2010

October 21, 2010

USA-FORECLOSURE/HEARINGSRetirement account holders who avoided minimum distributions in 2009 won’t have the same break in 2010. By December 31, anyone born before July 1, 1939 will have to pull money out of their IRAs and other tax-deferred retirement accounts.

1099 tax rule may bring big pain to small business

October 20, 2010

The new rules on 1099 forms, which were attached to the health care bill and are set to go into effect in 2012, call for all businesses, no matter how small, to file 1099 forms for goods as well as for services. That sounds like a technicality, but it’s got small business up in arms.

Tax rule change causes big small-business ruckus

October 18, 2010

In the big tax fights of this year, the coming changes to who must get 1099 forms would hardly seem to rate. But for the vast majority of small businesses, these new rules will hit far harder than the estate tax, despite political posturing on that front.

Obama asks to extend education tax breaks: What’s at stake?

October 14, 2010

USA/President Obama has asked Congress to renew the American Opportunity Tax Credit, which gives more than 12 million college students and their families tax breaks of up to $2,500 a year per student. Originally passed as part of the 2009 stimulus legislation, the credit is slated to expire at the end of this year. If it does, other credits and deductions would still be in place, but they would be less generous.

Tax cuts: You could be a “millionaire”

October 12, 2010

USA-TAX/Werner Renberg is a writer and author based in Chappaqua, N.Y. He is the author of four books, including All About Bond Funds: A Complete Guide for Today’s Investors. The opinions expressed are his own.

Is breaking even the new normal for investors?

October 8, 2010

Investors are lowering the bar when it comes to measuring financial success.

According to a new survey from Fidelity Investments, 55 percent of investors say any kind of positive gain in their portfolios in these volatile markets qualifies as a “success.” And another 23 percent say break-even investment returns can be considered an achievement.

Estate tax uncertainty: Planning for 2011

October 4, 2010

When you think about what the outcome of the highly political battle over the estate tax might be, just remember: Last year’s common wisdom that lawmakers would not allow the estate tax to expire for one year proved wrong. Even after the deaths of billionaires including George Steinbrenner; Janet Morse Cargill of the family that founded Cargill; Texas pipeline magnate Dan Duncan; and California real estate mogul Walter Shorenstein, the gap year has continued without any clarity.

Saving for the class of 2028

October 1, 2010

georgetownCatherine Onofrey is going to Georgetown. Or Harvard or the University of Illinois. Wherever her top choice is in 2028 — the year this one-month-old New Yorker should graduate from high school.

3 ways to play higher taxes

September 17, 2010

Nothing is certain except death and taxes, so the saying goes. But today, with tax rates in flux after yearend, and daily pronouncements from lawmakers — now back from summer recess — about what should happen, uncertainty reigns.