I'm trying to save on taxes. Can I deduct losses against my IRA's gains?

The rules for IRAs are strict, but they can help with long-term gains. (pixabay.com) Q. If I close my IRA by converting the funds to a Roth IRA, can I deduct losses from a non-IRA account against profits gained in my IRA? -- Investor A. We see what you're getting at, but it doesn't work that way. When you withdraw funds from an IRA account, you must pay federal and state income tax on the taxable amount of the withdrawal. The taxable amount is the excess amount over the IRA's "basis," said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. There are two ways to get basis in an IRA. The first is when you make a non-deducti

I inherited an IRA. Do I have to take distributions, and how much?

Here's a look at what to expect if you inherit and IRA. (pixabay.com) Q. When my brother died, I inherited a $60,000 IRA. I know I will have to take out Required Minimum Distributions (RMDs) every year. I'm 64. Do I have to take an RMD, and if I do, by when and how much? -- Beneficiary A. Distributions from inherited IRAs can be confusing. When in doubt, go to the IRS' website. The rules covering inherited IRAs depend on whether the IRA was left to you by your spouse or a non-spouse, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. "Since you inherited the IRA from your brother, the non-spouse rules apply," Kiely s

Medicare Part B premiums will go up if you don't watch your income levels

A look at how your income impacts your health care premiums as a senior citizen. (pixabay.com) Q. I retired this summer and just turned 70 1/2 on Oct. 27, 2018. I have questions about Required Minimum Distributions so I can avoid paying more for Medicare Part B. Can I take part of my RMD in 2018 and part in 2019, and then my second RMD at the end of 2019? -- Senior A. You raise two issues in your questions: Medicare Part B premiums and Required Minimum Distributions from qualified retirement accounts. Let's start with Medicare. Medicare Part A covers the cost of a hospital bed, nursing care and the hospital food, said Bernie Kiely, a certified financial planner and certified public accountan

I want the N.J. pension exclusion. How can I find income that won't be counted?

If you earn too much, you'll lose the pension exclusion. (pixabay.com) Q. New Jersey's pension exclusion is unfair. If you earn $1 over the maximum of $100,000, you get no benefit. What investments are tax-free for state and federal purposes and are recommended to reduce income for tax purposes? Bond values can vary, so are there any investments that will never go down yet provide a fair return? -- Taxpayer A. Unfair? Of course everyone wants whatever tax breaks they can get, so we understand your frustration. But most tax breaks have some kind of cutoff. The pension exclusion is no different. Let's first go over the rules for the pension exclusion. New Jersey allows seniors who are 62 or o

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Kiely Capital Management offers financial planning and investment advice. Serving Central and Northern New Jersey, Yvonne and Bernard (Bernie) Kiely provide over 25 years of experience offering discretionary asset management, retirement planning and income tax preparation. KCM is registered with the State of New Jersey as a Registered Investment Advisor.


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