What is an Advance Healthcare Directive?

While no one ever wants to hear that their child has been injured or struck by a serious illness while away at college, worse still is being unable to get any information about your child’s situation. Due to privacy laws (and the fact that your child is – technically – an adult), the only way you’ll be able to gain access to your child’s medical information is to have a signed Advance Healthcare Directive in place.

An Advance Healthcare Directive executed by the college student can give the parents authority in an emergency situation. It also includes a medical power of attorney that allows the student to appoint another person to access his or her health care records and make medical decisions on his or her behalf. Completing an Advance Health Care Directive will provide parents and students with the assurance that if an emergency occurs, the parents will be allowed to do what they do best–act on their child’s behalf and in his or her best interest.

For more information, please contact MJW EA & Company LLC.

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You’ve Seen Him in Person, Now Hear What He Has to Say

Beary-Smart-Says-Art-MJW-EA “When it comes to value for your money, consider this:  other firms charge per tax form.  MJW EA & Company LLC charges by the hour.  The difference is our quality not their quantity.”

 

Look for more of what’s on Beary’s mind and tips he comes across in his travels through tax season.

~ Don’t let taxes be a bear – contact us for your tax and financial needs.

Things You Might Not Realize About a Roth Conversion

The quickest way to get a relatively large sum into a tax-smart Roth IRA is by converting a traditional IRA into a Roth account, and you have time before year’s end. Relatively low current tax cost for converting plus a chance to avoid higher tax rates in future years on income that will accumulate in your Roth account equals a continuing perfect storm for the Roth conversion strategy, but you have to get it done this year to start reaping the tax-saving benefits.

Key Points:

  • A Roth conversion is treated as a taxable distribution from your traditional IRA. Doing a conversion before year-end can trigger a bigger federal and/or state income tax bill for this year.
  • Today’s federal income tax rates might be the lowest ever, so if you convert this year you’ll pay today’s relatively low rates on the extra income triggered by the conversion and avoid the potential for higher future rates on all the post-conversion income that will be earned in your new Roth account.
  • Qualified Roth withdrawals taken after age 59½ are totally federal income tax free.
  • To be clear, the best candidates for the Roth conversion strategy are people who believe that their tax rates during retirement will be the same or higher than their current tax rates.
  • Converting a traditional IRA with a relatively big balance could push you into a higher tax bracket. For example, if you’re single and expect this year’s taxable income to be about $150,000, your marginal federal income tax bracket is 28%. Converting a $100,000 traditional IRA into a Roth account this year would cause most of the extra income from converting to be taxed at 33%. The conversion can be spread over three years. In converting it that way, it would be taxed at 28%.
  • You have until October 15th of next year to reverse a 2014 conversion. If for any reason values go awry, the re-characterization (reversal), ensures that things are like the 2014 conversion never happened, and you don’t owe any extra tax from the now-reversed conversion.
  • People with a higher tax threshold are not eligible to contribute to a Roth IRA, but may be able to make a non-deductible traditional IRA contribution and immediately convert it to a Roth IRA with no tax consequences.

These moves can be tricky. To make sure you understand all the implications and tax consequences, please schedule time to meet with us at MJW EA & Company LLC, and be sure to check out the Social Security and Retirement Planning page on our website (or click here to be taken there directly).

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Change in Filing Protocol for You Annual Reporters!

The Secretary of State will no longer be mailing postcard reminders to pay and file your annual reports. You will need to check online for when they are due and how much they cost. Below we’ve provided some helpful info, as well as direct links to the sites you need. If you have any questions or concerns, we are always here to help.

Helpful Tips:

The cost to file:

  • CT Domestic Stock Corporations (profit corporations): $150
  • CT Foreign Stock Corporations: $435
  • CT Domestic and Foreign LLCs: $20
  • CT Domestic and Foreign LPs: $20
  • CT Domestic and Foreign LLPs: $20
  • CT Domestic and Foreign Nonstock corporations (nonprofit): $50
  • CT Charity Annual Renewal: $50

How to file your Connecticut Commercial Recording Division annual report:

All registered businesses file an annual report except Connecticut religious corporations or Connecticut Statutory Trusts. You have to file your Connecticut annual report using the Secretary of State’s online filing system.

When is the Connecticut Annual Report Due?

Domestic Stock and Nonstock Corporations have an initial report due 30 days after their date of registration. Then corporations file a report by the end of their anniversary month each year. So if you filed your corporation in Connecticut on January 15th, you would have an initial report due within 30 days, then you would have an annual report due by January 31th the next year and each year after that.

Foreign stock and nonstock corporations, and domestic and foreign LLCs, LLPs, and LPs just file annual reports. Their annual reports are also due by the end of the anniversary month. So if your LLC was filed in Connecticut on January 15th, you would file a report by the following January 31st, and by each January 31st after that.

Connecticut charities are required to register with the Attorney General’s office and renew annually. This renewal is due 5 months after fiscal year end, typically by May 31st.

Late fees?

There are no late fees for businesses; you are just in default (not in good standing) with the Connecticut Secretary of State until you do file the report.

Charities have a $25 penalty for late renewals.

Who can file Connecticut annual reports?

The annual reports can be filed online by anyone authorized. The charity renewal must be signed by two officers of the charity.

 

 

Resources:

Office of the Secretary of the State
Commercial Recording Division
30 Trinity Street
PO Box 150470
Hartford, CT 06115-0470
Phone: (860) 509-6002
Email: crd@ct.gov

Public Charities
Department of Consumer Protection
165 Capitol Avenue
Hartford, CT 06106-1630
Phone: (860) 713-6100

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Vote for Beary!

We need your help!  Please vote for Beary, the MJW EA & Company LLC entry in the Madison Chamber Scarecrow Contest.  He wants to let you know that “Taxes can be a bear, but we’re here to help!”