IRA

By Nathan Vinson, Partner English, Lucas, Priest and Owsley, LLP Recently, a colleague asked me what I thought was a simple question about the required minimum distributions that those over 70 ½ must take each year from their retirement accounts. In the course of doing the research to… Read More

By Nathan VinsonThe IRS recently enacted a new IRA rollover rule that’s actually good for consumers, and something that can really help you – but it is a lot more complicated than it appears on the surface. Essentially, the IRS is now giving you a year to roll your old retirement account into a new account or IRA, but only if you’ve faced difficult circumstances that delayed you from making the transaction.In the past, once you leave a job, you may have received a check for the balance of the funds in your 401(k) (or 403(b) or 457 plan, which are used by non-profits and government agencies, respectively). Once the check is in the mail, you’ve traditionally had 60 days to roll that money into an IRA or other qualifying retirement account.The administrator of the retirement plan is required to withhold taxes plus a penalty from your check, and will report that to the IRS. You won’t see the withheld money again, unless you roll over the funds within that 60-day time period.The basic concept is that Uncle Sam wants you saving for retirement, and penalizes you if you don’t keep up with it. Plus, 401(k) money goes into the account pre-tax, so it’s their chance to tax the money – and as we all know, the government never misses a chance to grab some dollars. Read More

By Nathan Vinson, Attorney English, Lucas, Priest and Owsley, LLPMost of us want to do the right thing when it comes to taxes.MOST of us. Or, perhaps we just don’t look good in orange.If we legitimately owe taxes on our income or an inheritance, we understand we have to pay. This is part of being an adult. (The boring, terrible part.)But it’s not as simple as writing a check to pay an invoice. Taxpayers, especially in Kentucky, are left to decipher the state’s tax laws and decide if it applies to their situation. More often than not, Kentucky tax laws are not black and white. Read More

Nathan VinsonBy Nathan Vinson, Attorney English, Lucas, Priest & Owsley, LLPAn Individual Retirement Arrangement (IRA) may be a vehicle available to Kentucky residents to avoid Kentucky’s inheritance tax.  The Kentucky inheritance tax is payable by the beneficiaries of a person’s estate, depending on what the beneficiary received and the relationship of the decedent to the beneficiary. “Class A” beneficiaries are exempt from the inheritance tax and include parents, surviving spouses, siblings (whether full or half), children (including adopted children and stepchildren), and grandchildren.“Class B” beneficiaries enjoy a partial exemption from the tax and include aunts, uncles, nephews and nieces (including by the half), daughter-in-laws, son-in-laws, and great-grandchildren (including those who are the grandchildren of adopted children and stepchildren).All other beneficiaries are considered “Class C” beneficiaries and are afforded a nominal exemption from the inheritance tax.  With the highest rate of Kentucky’s inheritance tax being 16%, Class B and Class C beneficiaries may take a big hit if they inherit any sizable amount from the decedent’s estate. Here is where planning opportunities arise using IRAs. Read More