I was recently asked by the Financial Planning Association (FPA) to give a Tax Planning presentation to participants at the Federal Reserve Bank of Kansas City’s “Money Day at the Fed.”  Several changes have been made that people might be able to take advantage of for next year’s taxes.   While I can’t list everything here (the presentation was 1 hr. long), I would like to point out some of the tax updates for 2010 that may apply to you:

  • No income ceilings limiting who is eligible to convert assets in traditional IRA or employer plan to a Roth IRA
  • For conversions in 2010 only, you may pay tax that’s due when you pay your 2010 federal income taxes or pay half with your 2011 return and half with your 2012 return
  • For 2010 only, federal estate taxes have been eliminated
  • Income ceilings restricting eligibility of high-income tax payers to take the full deduction for qualifying expenses have been eliminated
  • Several tax benefits, including deductions for state and local sales taxes and educator expenses, have been eliminated

Source: IRS, 2009, 2010

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John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit https://www.chladekwealth.com.

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