Joe Ramos, CEO & Sr. Wealth Advisor
Joe Ramos, CEO

Letter from the CEO

Tax Planning Update



Before the close of the 2008 year, President Bush approved new legislation to provide some relief for individuals and pension plan sponsors whose assets were adversely affected by the recent financial downturn. Among the changes that affect individuals, the Worker, Retiree, and Employer Recovery Act of 2008 temporarily waives required minimum distributions from retirement plan accounts for 2009 only. We detail the provisions in “Year-End Pension Legislation Provides Relief from RMDs.”

Career transitions can be stressful, especially if your new job requires relocation. While the costs of a job search may appear minimal, they can add up, especially if professional services and travel are involved. If you are looking for a new job in your present occupation and relocate to accept a new position, many of the expenses incurred may be tax deductible. We detail the rules in “Tax Breaks for Job Search and Moving Expenses.”

For parents who are saving for a child’s education, recent changes in the kiddie tax laws may make it more challenging to transfer investment income to the child to take advantage of the child’s lower tax rate. In “Coping with the Kiddie Tax Expansion,” we explain the kiddie tax rules and provide alternate strategies for parents saving for education.

Finally, the IRS has declared certain lean-burn technology vehicles eligible for the alternative motor vehicle tax credit enacted by the Energy Policy Act of 2005. Until recently, only hybrid, fuel cell, and alternative fuel vehicles qualified for the credit, as lean-burn technology was still under development. We provide more information in “Lean-Burn Vehicles Qualify for Tax Credit.”

As always, we welcome your comments,

C. Joseph Ramos