INCOME TAX PLANNING II: FINANCIAL PLANNING CONSIDERATIONS

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INCOME TAX PLANNING IIFINANCIAL
PLANNINGCONSIDERATIONS
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KEY AREAS FOR TAX PLANNING

• Funding Education
• Investment Planning
• Retirement Planning Employee Benefits
• Estate Planning

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THE TAXPAYER RELIEF ACT OF 1997

• Education Planning
• Creation of Education IRA(1998)
• Education Tax Credit
• Interest Deductibility

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TAXES AND INVESTMENT PLANNING

• Marginal Income Tax Rates (1998)
• Single filer Married-filing jointly
• 0 - 25,350 15 0
  - 42,350 15
• 25,351 - 61,400 28 42,351 - 102,300
  28
• 61,401 - 128,100 31 102,301 - 155,950 31
• 128,101 - 278,450 36 155,951 - 278,450 36
• over 278,450 39.6 over
  278,450 39.6
• Capital Gains Tax Rates (1998)

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RETIREMENT PLANNING EMPLOYEE BENEFITS

• Changes to traditional IRAs
• Creation of Roth IRA
• Home Sales

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RETIREMENT PLANNING EMPLOYEE BENEFITS

• Life Insurance
• Medical Insurance
• Disability

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TAXES AND ESTATE PLANNING

• Increase in Estate and Gift Tax Unified Credit
• Inheritance Issues

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STRENGTHS AND WEAKNESSES ANALYSIS TAX PLANNING

• What are the relevant client factors?
• What is the clients current financial situation?
• What opportunities for tax planning exist?