2017 CHANGES TO THE REVERSE MORTGAGE PROGRAM

♠ Posted by Marc J. Soss in 2017 reverse mortgage changes,elder planning,florida estate planning,home equity,retirement planning 2017,reverse mortgage,Sarasota estate planning,Sarasota retirement planning

Effective October 2, 2017, new rules go into effect for federally backed HECM (Home Equity Conversion Mortgage) reverse mortgages. The good news is that the new rules will only impact new borrowers. A reverse mortgage allows an individual over age 62 to borrow against the equity in their home without being required to pay back the loan until they either move, sell the property or die. For many seniors, a reverse mortgage provides them a means to generate funds in retirement. The new rules will increase the upfront cost of the reverse mortgage to 2.0% (it previously was 0.5% for those receiving...

Read More

PROJECTED 2018 ESTATE AND GIFT TAX EXEMPTION AMOUNTS

♠ Posted by Marc J. Soss in 2018 annual exclusion,2018 estate tax,2018 estate tax exclusion,2018 federal estate tax exemption,2018 federal gift tax exemption,gift tax

For most, the release of the Consumer Price Index by the Department of Labor goes unnoticed. However, this information allows for the prediction of the 2018 estate, gift, and generation-skipping transfer tax amounts. Estate Tax Exemption – Under current federal tax law, a U.S. citizen may pass tax-free (by gift or at their death) the total sum of $5,490,000 to their heirs and beneficiaries (excluding their spouse). This amount is projected to increase to $5,600,000 in 2018. As a result, in 2018 a couple (U.S. citizens) will be able to collectively transfer $11,200,000.00 without incurring...

Read More

HURRICANE HARVEY TAX RELIEF FOR THOSE IMPACTED BY THE STORM

♠ Posted by Marc J. Soss in 2017 Federal Income Tax figures,2017 Federal Income Tax plan,2017 retirement account,federal income tax return,Hurricane Harvey tax relief,IRC Section 139,retirement account access,tax law changes

The devastation of Hurricane Harvey will be felt for years to come. While relief efforts are underway to assist victims of the storm the Internal Revenue Service has also established procedures, via announcement or news relief, to assist those adversely impacted. Retirement Plan Hardship Distributions: IRS Announcement 2017-11 (the “Announcement”) allows participants and beneficiaries of 401(k) plans or 403(b) plans, subject to restrictions, hardship access to or loans from their retirement funds until January 31, 2018. Eligibility requires you to have lived or worked in a county designated...

Read More