Tax penalties

For some, estimated tax payments are a non-issue. Others may earn all of their income from sources that don’t withhold amounts for federal income taxes.

Younger clients are more savvy consumers who know how to minimize their expenses and are less inclined to spend on material goods, an expert says.

Taxpayers face a 5% penalty if they fail to meet the deadline.

When financial emergencies compel early withdrawals from clients' retirement accounts, they face income tax and often an additional 10% penalty.

The Treasury and IRS are lowering the withholding underpayment threshold to 80%.

Robert Graham allegedly solicited clients into risky investments, which he directed to his private company. He is the ex-chief of the Arizona Republican Party.

Salary-reduction arrangements can exclude up to $520 each month from a client’s taxable income to cover these expenses.

Sometimes the strategy can eliminate a domino effect of other expensive tax problems down the road, Ed Slott writes.

The new law will affect how financial advisors and clients evaluate the pros and cons.

Advisors should contact every client who did a Roth conversion in 2017 to discuss a key change in tax regulations, Ed Slott says.

It’s the Roth’s 20th birthday. Where is everyone?

“Your risk of being audited goes up,” says RIA powerhouse Ron Carson.

The breach follows other developments that have made offshore planning methods less attractive.

IRA balances are up, and so are divorces, particularly among baby boomers. These so-called gray divorces have roughly doubled over the past 25 years, according to the Pew Research Center.

When a tax-deferred account is part of an estate, failure to follow the tax rules correctly can result in a financial disaster.

The allegations come a year after the firm paid over $300 million to resolve regulators' claims that it failed to tell wealthy clients it was steering them into its own funds.

Now harsh penalties and taxes on late 60-day rollovers from company plans and IRAs can be avoided, but beware: There are some rollover mistakes that still cannot be fixed.

Knowing how and when to withdraw can save clients big in their golden years.