Monthly Archives: January 2013

Republican-controlled House votes in favor of a short-term debt ceiling fix that would extend the country’s borrowing authority until May, while compelling Congress to pass a budget or have their pay suspended.

IMG02329-20110323-0835THE DEBT CEILING DILEMMA

Tension eases for the moment, but contention remains.

By : GREG OLIVER

Global investors watch America anxiously. In late December, the U.S. technically reached its debt ceiling of approximately $16.4 trillion, with the federal government taking what Treasury Secretary Timothy Geithner called “extraordinary measures” to avert a default.1

Even as House GOP leaders announced plans Friday to approve a three-month increase in the federal debt limit, tension remains – and that tension could provoke a debt ceiling battle on Capitol Hill reminiscent of the impasse of 2011 later this year.2

President Obama has again presented a debt ceiling hike as an essential move needed to pay America’s bills. House Republicans do not want to see a long-term increase in the debt limit without corresponding spending cuts, and some conservatives have characterized the Obama administration’s warnings as more posturing than fact.

A new plan to deal with critical fiscal deadlines. Sometime between February 15 and March 15, the federal government’s borrowing capacity will (in theory) be exhausted. March 1 now represents the start of the “sequester” – the automatic spending cuts detailed in the 2011 deficit accord. On March 27, a six-month measure passed to fund federal government operations expires.3

Last week, House Majority Leader Eric Cantor (R-VA) unveiled a plan for a three-month extension of
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As of today : Republican-controlled House votes in favor of a short-term debt ceiling fix that would extend the country’s borrowing authority until May, while compelling Congress to pass a budget or have their pay suspended.

Citations. GREG OLIVER 8073r08749017451947519045714
1 – www.latimes.com/business/money/la-fi-mo-debt-limit-geithner-treasury-boehner-obama-20130114,0,5318272.story [1/13/13]
2 – www.latimes.com/news/politics/la-pn-house-leaders-debt-increase-20130118,0,4453098.story [1/18/13]
3 – www.reuters.com/article/2013/01/17/us-usa-fiscal-ryan-idUSBRE90G13520130117 [1/17/13]
4 – www.cnbc.com/id/100381526 [1/15/13]
5 – www.cnbc.com/id/100377700 [1/14/13]
6 – www.ocregister.com/opinion/debt-383518-payments-government.html [1/16/13]
7 – thehill.com/homenews/house/275663-pelosi-urges-use-of-14th-amendment-to-avoid-debt-ceiling-crisis [1/4/13]
8 – www.nytimes.com/roomfordebate/2013/01/13/proposing-the-unprecedented-to-avoid-default/platinum-coin-would-create-a-trillion-dollar-in-funds [1/13/13]

GREG OLIVER ( Help others in need )

Give & receive a tax break. Schools, hospitals and other non-profit organizations are welcoming the return of the charitable IRA rollover – an opportunity that lets a traditional IRA owner aged 70½ or older donate up to $100,000 to charity with a tax perk attached

THE CHARITABLE IRA ROLLOVER RETURNS FOR 2013. Through January, you can still make one for 2012. BY GREG OLIVER

www.go2ofs.com 2013 A Banner YearTHE CHARITABLE IRA ROLLOVER RETURNS FOR 2013

Through January, you can still make one for 2012.

BY GREG OLIVER

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Give & receive a tax break. Schools, hospitals and other non-profit organizations are welcoming the return of the charitable IRA rollover – an opportunity that lets a traditional IRA owner aged 70½ or older donate up to $100,000 to charity with a tax perk attached.1

This donation can accomplish two very significant things: the IRA owner can subtract the gifted amount from his or her adjusted gross income, and the donation can also count toward the IRA owner’s Required Minimum Distribution (RMD) for that year. So even though an IRA owner can’t claim a tax deduction through this move, it can play a big role in an estate planning strategy.1,2

Request an asset transfer; refrain from a withdrawal. Turn to a financial or tax professional you know and trust for assistance with this, because it involves some logistics.

If you just withdraw money from your IRA and give it to a school or a charity, it is not an IRA charitable rollover. Any money that you withdraw in this fashion will be taxed as regular income.

To arrange an IRA charitable rollover, you must ask your IRA custodian to send the amount of the donation directly to a charity or qualified non-profit organization. In financial parlance, this is known as a trustee-to-trustee transfer. This requires a bit of paperwork, but the potential benefits of an IRA charitable rollover far outweigh the minutes spent.

IRA charitable rollovers cannot be made to donor advised funds, private non-operating foundations or supporting organizations. IRC Section 509(a)(3) defines a supporting organization as a charity that will “carry out [its] exempt purposes by supporting other exempt organizations”; examples include university endowment funds and non-profits providing essential services for hospital systems.3

You may still be able to make a charitable IRA rollover for 2012. When Congress reinstated this provision as a byproduct of the fiscal cliff deal, it also made it possible for a few IRA owners aged 70½ or older to make this move and have it count as part (or even all) of their 2012 RMD. This is only possible if a) you delayed taking your 2012 traditional IRA distribution until December and b) you donate cash to charity between now and January 31, 2013.1,2,4

Eligible IRA owners can even reclassify cash amounts they gave to charities in December as IRA donations, providing the donations were made after the IRA owner took his or her RMD for 2012. Again, be sure to see a qualified tax or professional about this if you are interested.4

GREG OLIVER 90459078590834569284590824-058]1-03485

Citations.
1 – online.wsj.com/article/SB10001424127887323374504578217312902460392.html [1/6/13]
2 – www.forbes.com/sites/deborahljacobs/2013/01/02/fiscal-cliff-deal-allows-giving-ira-assets-to-charity/ [1/2/13]
3 – www.irs.gov/Charities-&-Non-Profits/Section-509%28a%29%283%29-Supporting-Organizations [8/2/12]
4 – online.wsj.com/article/SB10001424127887323783704578247781682321430.html [1/18/13]

About Greg Oliver, The Right Financial Adviser

About GREG OLIVER
___________
Greg Oliver have been assisting mature and senior clients for 23 years on how to protect their assets and invest wisely. In fact, he has assisted over 5,212 + retirees to safely invest over 174.4 + million dollars in secure ( SAFE ) investment plans.

GREG OLIVER, Understands Effective Financial Planning and Estate Planning

Greg Oliver, has been helping people take control of their future with good financial life planning since 1989. He is President and a CEO of OLIVER Financial Services, USA.

Greg provides personal financial planning and investment review services for clients in the Continental United States. His primary area of practice is in serving clients either getting ready for retirement or those retired. Greg has special expertise in the financial planning problems of the aging.

Prior to entering the financial planning profession in 1989, Greg served 10 years in the United States Marine Corps.

Greg and his wife Ann live in Cincinnati. When not working at building OLIVER Financial Services, USA, he enjoys working with charities and supports The Society of Saint Vincent de Paul in helping others in need.

CALL Today for a FREE Consultation. No cost / obligation.

513 – 860 – 7934 e-mail ofs@one.net

IRS Issues Guidance on 2012 Charitable Donations from IRAs. From the desk of GREG OLIVER ofs@one.net

From the desk of GREG OLIVER ofs@one.net
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RE: IRA ( Charitable Gift )
IRS Issues Guidance on 2012 Charitable Donations from IRAs

The American Taxpayer Relief Act of 2012 (ATRA) extended tax-free charitable contributions from IRAs through 2013. The IRS has provided guidance (on its Retirement Plans webpage) on how the extension applies to 2012 qualified charitable distributions (QCDs).

The IRS clarifies that a QCD made in January 2013 that is treated as a 2012 QCD will satisfy an IRA owner’s unmade 2012 required minimum distribution (RMD) if the QCD equals or exceeds the 2012 RMD. Further, QCDs made in January 2013 for 2012 cannot be used to satisfy an IRA owner’s 2013 RMD (even if the IRA owner has already received his or her 2012 RMD).

The IRS also provides guidance on how 2012 QCDs are to be reported on Form 1040 by IRA owners, and on Form 1099 by IRA trustees.

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GREG OLIVER
513.860.7934
Website : www.go2ofs.com
Blog: www.oliverfinancialservices.com
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