25 Million Additional Taxpayers May Face the Dreaded AMT

25 Million Additional Taxpayers May Face the Dreaded AMT

In 1969 when the Alternative Minimum Tax was first implemented, it guaranteed that millionaires and high-income individuals who paid little to no income tax would have to pay a minimum amount of taxes. Over the years the number of individuals who fell into this category has grown, along with the total revenue. Different measures have been taken through the years, such as The Tax Reform Act of 1986 which eliminated the partial exclusion of capital gains, reducing overall revenue at the time, but helping individual taxpayers. With 2011 on the horizon, the potential number of additional AMT taxpayers will increase to 25 million, if the current legislation is not extended. The question is, should you fear the AMT? Full story

Should You Contribute to a Roth IRA, Traditional IRA or 401(k)?

Should You Contribute to a Roth IRA, Traditional IRA or 401(k)?

Young investors are faced with a number of retirement options and deciding how to allocate that savings can be a little confusing. Those who work for somebody else often have the option to invest in a 401(k) or similar employer-sponsored plan. In addition, you have individual retirement accounts such as the Traditional and Roth IRA. The problem is there’s no single plan that’s best for everyone. You’ll often hear financial pundits tout the Roth IRA as the best thing ever, but is it really best for you? Full story