News you can use
Student Loan Forgiveness Update
The Biden administration has stopped accepting applications for federal loan forgiveness on Thursday after federal judge in Texas rejected President Biden’s executive action to cancel up to $20,000 in student debt relief. The president’s student loan forgiveness plan was already on hold from challenge brough by six Republican-led states – Nebraska, Missouri, Arkansas, Iowa, Kansas, Soutth Carolina which also believed that president was overstepping his authority. Did the President overstep the authority of the executive branch and was this plan just too good to be true for those who are paying towards their student loans it remains to be seen. For more details click on the link below.
When is a Roth conversion beneficial?
Roth conversions may be attractive today for high-income individuals since the top marginal income tax rate is scheduled to revert to 39.6% from 37% in 2026, or possibly sooner if Congress passes tax legislation. Those who anticipate being subject to those future tax rates may wish to execute partial Roth conversions. Some other factors to consider when determining if a Roth conversion may be valuable would be: Tactical Roth Conversions, Required Minimum Distributions (RMDs), Qualified Charitable Distributions, Estate Tax Savings. For a full article click on the link below.
What are I Bonds and how do they work?
I Bonds are United States Savings Bonds which are issued by United States Department of the Treasury to help pay for the U.S. government’s borrowing needs. I bonds are inflation protected bonds and are a good option to conder if you have cash sitting in a savings account. Investors can buy up to $10,000 worth of I bonds annually through the government’s Treasury Direct website. Investors also can purchase another $5,000 with their tax refund, upping the annual total purchase amount of bonds to $15,000 per person. The current interest rate on I bonds is 6.89% which will apply until April 2023. For more details on I Bonds and how they work click on the link below.
When is a good time to claim Social Security early?
One of the questions that CPAs often get asked is: When should I start taking Social Security benefit? This question is every broad as everyone is different and depending on a various factor the timing for starting to draw on Social Security will be different from person to person. I came across an article that talks about some of the general reason that should be considered to determine if an individual should claim Social Security early. Click on the link below for a full article that talks about 10 Reasons to claim Social Security early.
Happy Thanksgiving!!!
My family and I would like to wish you a Happy Thanksgiving, filled with good food and great memories! Douglas, Dragana, DeeDee, Dixie & Dexter Moran.
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