McSwain & Company, PS
Deciding if a Roth IRA Conversion is For You
January 1, 2021 · Blog, Tip of the Month, Uncategorized
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These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
January 1, 2021
Published by Service2Client on January 1, 2021
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đź–¨ Print⏱ 2 min readRoth IRAs can be a powerful tax tool, but they are often misunderstood and misused. Investment income in Roth IRAs compound tax-free and most distributions are tax-free as well. Another benefit is that there are no required minimum distributions (RMDs) throughout the original owner’s life. Long-term Roth distributions are tax-free to the beneficiaries who inherit the IRA as long as they fully distribute the Roth within 10 years of inheriting. As the annual contribution limits are rather small, most Roth IRA contributions are made by converting a traditional IRA to a Roth IRA. The downside to conversion is that you’ll have to pay tax on the gross amount converted. Considering this can require a substantial cash […]
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January 1, 2021
Published by Service2Client on January 1, 2021
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đź–¨ Print⏱ 3 min readRodchenkov Anti-Doping Act of 2019 (HR 835) – This bill was introduced by Rep. Sheila Jackson Lee (D-TX) on Jan. 29, 2019. The purpose of this legislation is to give U.S. officials the power to prosecute individual athletes who used performance-enhancing drugs at international sports competitions involving American athletes. The legislation has been criticized by the World Anti-Doping Agency (WADA) as undermining the global anti-doping movement based on international cooperation, and because no other nation has extra-territorial jurisdiction in this field. The bill passed in the House in October, the Senate in November, and was signed into law by the president on Dec. 4. IoT Cybersecurity Improvement Act of 2020 (HR 1668) – This bill requires […]
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January 1, 2021
Published by Service2Client on January 1, 2021
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đź–¨ Print⏱ 4 min read5G networks promise high speeds, lower latency, and more robust security compared to its predecessors – and this has created a lot of buzz. As a result, there is a lot of competition among operators to roll out the network while manufacturers are already producing 5G devices. The deployment of 5G around the world has also been facilitated by a need for always-connected computers, widespread internet of things (IoT), and dependence on smartphones. All of this is constraining the 4G LTE technology. With the current uptake in remote working due to COVID-19, 5G is expected to see more deployment. However, despite the promised benefits, there are varying concerns about the potential vulnerabilities of this network. Since […]
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December 1, 2020
Published by Service2Client on December 1, 2020
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đź–¨ Print⏱ 3 min readVeterans’ Compensation Cost-of-Living Adjustment Act of 2020 (HR 6168) – Introduced by Rep. Elaine Luria (D-VA) on March 10, this bill increases Vet compensation benefits by 1.3 percent (the same as for Social Security recipients). The increase impacts veteran disability compensation, compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children. This bill passed in the House in May and the Senate in September, and was signed into law by the president on Oct. 20. Veterans’ Care Quality Transparency Act (HR 2372) – Designed to improve mental health care for veterans and reduce suicide rates, this bill was introduced by Rep. Lauren Underwood (D-IL) on April […]
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December 1, 2020
Published by Service2Client on December 1, 2020
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đź–¨ Print⏱ 4 min readWith every new project comes expectations, uncertainties, questions, opposition, and more. Elon Musk’s StarLink internet is one such project. Just last month, on Nov. 24, SpaceX launched 60 StarLink internet satellites – making a total of more than 900 of its flat-panel satellites already on low earth orbit (LEO). This also marked the company’s 23rd space launch since the start of 2020. But just what is StarLink; why is it a big deal; and will it replace existing internet infrastructure? Follow along for information already in the public domain that will help answer some of these questions. What is StarLink? StarLink is an initiative by SpaceX that aims to provide internet from space. Its goal is […]
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December 1, 2020
Published by Service2Client on December 1, 2020
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đź–¨ Print⏱ 4 min readWhile the pandemic is not over, we do have some good news. There are vaccines and they will be available soon. Here’s where we are in terms of an overall plan and where states are with distributing the vaccines. Operation Warp Speed The current administration has already purchased hundreds of millions of doses of several vaccine candidates. Two of them are from Moderna and Pfizer and they’ve shown significant efficacy in Phase 3 clinical trials. The incoming Biden administration will take on distribution and has established a COVID-19 Task Force. A limited number of doses may become available as early as December. The Interim Playbook This document from the Center for Disease Control and Prevention (CDC) […]
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December 1, 2020
Published by Service2Client on December 1, 2020
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đź–¨ Print⏱ 4 min readThere are certain year-end financial transactions that must clear by Dec. 31 to be reported on the 2020 tax return. It’s important to take a good look at your financial portfolio in light of the plethora of unusual events that occurred this year. Now is a good time to see if you have fallen off track and reposition your portfolio for better opportunities in 2021. Investment Portfolio Despite the dramatic stock market drop that accompanied the outbreak of COVID-19 on our shores, markets have recovered remarkably well. This means the traditional strategy of harvesting gains and losses at year-end could be appropriate for many investors. When your capital losses are more than your capital gains for […]
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December 1, 2020
Published by Service2Client on December 1, 2020
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đź–¨ Print⏱ 4 min readIn order to survive – and even thrive – during these unprecedented times, small businesses have had to find new ways to make money. The UPS Store’s Small Biz Buzz survey found that 41 percent of small businesses in the United States took steps to modify their businesses in hopes of survival. Fifteen percent provided customers with curbside delivery options, 28 percent moved to online sales as their primary source of sales, and 65 percent made a concerted effort to grow their e-commerce capabilities. More than 50 percent of those polled by a U.S. Census Bureau Small Business Pulse Survey said it would be at least half a year before pre-COVID levels of business come back. […]
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December 1, 2020
Published by Service2Client on December 1, 2020
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đź–¨ Print⏱ 3 min readThe Social Security Administration recently announced 2021 increases to both benefits and the taxable wage base for FICA taxes. Increases Announced for 2021 Workers are facing a 3.7 percent increase in the taxable wage base subject to Social Security taxes, increasing the amount from $137,700 up to $142,800. This means high earners who make as much as or more than the taxable wage base will pay $8,853.60 of the employee withholding portion or $17,707.20 in total for the self-employed – who pay both employee and employer portions of the tax. Retirees receiving benefits will only garner a 1.3 percent cost-of-living (COLA) raise in 2021, resulting in a raise of $20 per month for the average single beneficiary […]
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November 1, 2020
Published by Service2Client on November 1, 2020
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đź–¨ Print⏱ 4 min readThis has been a year of economic and tax uncertainty with the impact of the COVID-19 pandemic, potential stimulus bills, and the presidential election. As a result, tax planning may be more important than usual this year. To help guide you, we will cover six year-end tax planning strategies – three for individuals and three for businesses. Individual Year-End Tax Planning Tips and Strategies 1. Take advantage of above-the-line charitable deductions. Unlike previous years, where taxpayers needed to itemize their deductions in order to see any tax benefit from charitable deductions, everyone can benefit on their 2020 tax return. The CARES Act created an above-the-line charitable deduction for taxpayers who don’t itemize. In order to benefit […]
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November 1, 2020
Published by Service2Client on November 1, 2020
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đź–¨ Print⏱ 3 min readWith COVID-19 still requiring remote working, companies that effectively on-board new workers retain their workers longer, have better worker performance, and increase their profits by almost 100 percent, according to the U.S. Chamber of Commerce. However, there are many considerations that companies should take during this important process. For remote orientations, a welcome package that discusses the company’s products or services can be emailed to attendees prior to the live introduction. It’s also imperative that essential employees for the new hires (training and supervisors, for example) and existing employees who they will be working with are on the virtual meeting for introductions. Other considerations include maintaining a sense of professionalism. If a company has a […]
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November 1, 2020
Published by Service2Client on November 1, 2020
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🖨 Print⏱ 4 min readBy the end of September, the nation had recorded over a quarter-million cases of COVID-19 and nearly 60,000 deaths in nursing homes that were attributed to the disease. The recent pandemic offers yet another reason why more than 90 percent of seniors say they want to grow old in their homes rather than move into a senior housing facility. But just how feasible is that goal, from a financial perspective? Much depends on how independently you can live for the rest of your life. That is something we cannot plan. Even elderly people with an excellent gene pool and no known health conditions can experience a fall or other accident that could render them helpless. And […]
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November 1, 2020
Published by Service2Client on November 1, 2020
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🖨 Print⏱ 5 min readImagine using your mind to control machines, or your employer reading how you feel in real-time from a dashboard? This is the future of BCI technology. Do we really need this technology? What are the potential benefits and possible implications of this emerging field? What is BCI? Brain-Computer Interface (BCI) is also referred to as a Brain-Machine Interface or Neural Interface. Wikipedia defines BCI as a direct communication pathway between an enhanced or wired brain and an external device. The brain is said to process billions of bits of information per second and runs on electrical signals that could control electronics, and BCI attempts to create this connection. The BCI technology that connects internally (invasive BCI) […]
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November 1, 2020
Published by Service2Client on November 1, 2020
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đź–¨ Print⏱ 3 min readNational Suicide Hotline Designation Act of 2020 (S 2661) – Introduced by Sen. Cory Gardner (R-CO) on Oct. 22, 2019, this bill requires the Federal Communications Commission to designate 988 as the universal telephone number for national suicide prevention and mental health crisis hotline. It also directs the Department of Health and Human Services to provide access to competent, specialized services for high-risk populations such as LGBTQ youth; minorities; and people who live in rural areas. The Act was passed in the Senate in May, the House in September, and was signed into law on Oct. 17. Savanna’s Act (S 227) – Named in memory of Savanna LaFontaine-Greywind, a young woman brutally murdered in Fargo in […]
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November 1, 2020
Published by Service2Client on November 1, 2020
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đź–¨ Print⏱ 4 min readWe’re living in unprecedented, challenging times. If you’re feeling stressed and scared, you’re not alone. However, there is a way to navigate through all of this uncertainty: gratitude. Studies have shown that keeping in mind the things you’re grateful for on a regular basis not only helps you mentally but also physically, which is something we all need these days. Gratitude Improves Your Immune System According to Lisa Aspinwall, Ph.D., a psychology professor at the University of Utah, there’s data to back this up. In one study, researchers compared the immune systems of healthy, first-year law students who were under stress and characterized themselves as optimistic to their more pessimistic classmates. Result: The former maintained a […]
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October 1, 2020
Published by Service2Client on October 1, 2020
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đź–¨ Print⏱ 3 min readPROSWIFT Act (S 881) – This Act was sponsored by Sen. Gary Peters (D-MI) on March 26, 2019. The legislation is designed to improve understanding and forecasting of weather events in space. The bill details provisions designed to improve the ability of the United States to both forecast and mitigate the effects of space weather. The bill designates the National Science and Technology Council’s Space Weather Operations, Research, and Mitigation Working Group as the authority to direct other agency initiatives. The bill establishes a pilot program to enable the National Oceanic and Atmospheric Administration (NOAA) to enter into contracts with the commercial sector to provide space weather data, in adherence to certain standards. The bill passed […]
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October 1, 2020
Published by Service2Client on October 1, 2020
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đź–¨ Print⏱ 4 min read In last month’s article titled “How to Make the Most of Digital Marketing,” we examined how digital marketing can help your business grow. Unfortunately, this involves more than waving a magic wand. You can either choose to do it yourself or hire an agency to do it for you. Either way, if it’s not well done, you could end up wasting a lot of money with no return on your investment. Indeed, any business will want to implement a system that promises to grow revenue. But the biggest mistake is to dive into a scheme that you don’t understand well. Understanding the potential of digital marketing and how you can deploy it effectively will significantly help […]
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October 1, 2020
Published by Service2Client on October 1, 2020
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đź–¨ Print⏱ 4 min readDue to the uncertainty of COVID-19, many schools across America have transitioned to at-home learning. This alone presents a whole new set of challenges for parents, not the least of which is figuring out what to feed your kids for lunch – every single day of the week. While peanut butter and jelly is a reliable standby, here are some cheap, easy alternatives you can whip up in no time. English Muffin Pizza Grab some English muffins and top them with pizza sauce or marinara. Either one will work. (Hint: use the store brand because it’s comparable and usually costs less.) If you like, you can even add shredded cheese. Put them in a toaster oven […]
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October 1, 2020
Published by Service2Client on October 1, 2020
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đź–¨ Print⏱ 4 min readAs bad as the economy is right now due to the COVID outbreak in the United States, many economists are predicting that the long-term outlook is much bleaker. Alas, Congress and the Federal Reserve’s efforts at stimulus and interest rate management have done much to keep the economy and stock market afloat. However, small businesses – the backbone of America’s employment growth – are closing every day. As consumer spending reduces further, the impact will likely affect Wall Street. Consequently, share prices may soon begin correcting to reflect the future more so than the present. It should come as no surprise, then, that 88 percent of respondents admit they are worried about their finances, according to […]
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October 1, 2020
Published by Service2Client on October 1, 2020
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đź–¨ Print⏱ 4 min readWith winter around the corner and the threat of seasonal viruses looming, a second wave of COVID-19 poses a real threat to our health and business operations, according to Johns Hopkins Medicine. Statistics from the Centers for Disease Control and Prevention (CDC) reveal that the 2019-2020 flu season took 24,000 lives and sickened 39 million individuals. Then when we add the fact that there are children who might not be receiving vaccinations – be it for the measles, whooping cough, and others – due to COVID-19, the risk for infections multiply. Based on these factors, there’s a real possibility of a second wave of COVID-19 and other seasonal illnesses impacting business operations for the worse. As […]
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