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☆ IRS announces bigger estate and gift tax exemption for 2025
▼ + stars: | 2024-10-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The Internal Revenue Service has announced a higher estate and gift tax exemption for 2025. The IRS also boosted figures for dozens of other provisions, including federal income tax brackets, long-term capital gains tax brackets and eligibility for the child tax credit, among others. Here are key steps to consider from top-ranked advisorsTrump's tax cuts could expire after 2025. How advisors are preparingAfter 2025, the higher estate and gift tax exemption enacted by former President Donald Trump will sunset without action from Congress. The Tax Cuts and Jobs Act doubled the exemption to $11.18 million in 2018, according to the Tax Policy Center.

Persons: Donald Trump Organizations: Internal Revenue Service, IRS, Finance, Tax, Center

☆ IRS announces new federal income tax brackets for 2025
▼ + stars: | 2024-10-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The top rate of 37% applies to individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more for 2025. The IRS has announced new federal income tax brackets and standard deductions for 2025. Federal income tax brackets show how much you owe on each part of your "taxable income," which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income. If the provision expires, the tax brackets will revert to 2017 levels , shifting to 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. Trump's tax cuts also included higher standard deductions, which will sunset after 2025 if Congress doesn't extend that tax break.

Persons: Donald Trump Organizations: IRS

☆ The IRS unveils higher capital gains tax brackets for 2025
▼ + stars: | 2024-10-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The IRS has unveiled higher capital gains tax brackets for 2025. In its announcement Tuesday, the agency boosted the taxable income limits for the long-term capital gains brackets, which apply to assets owned for more than one year. The IRS also increased figures for dozens of other provisions, including federal income tax brackets, the estate and gift tax exemption and eligibility for the child tax credit, among others. How advisors are preparingThe capital gains rate you pay is based on which bracket you fall into based on taxable income. Starting in 2025, single filers will qualify for the 0% long-term capital gains rate with taxable income of $48,350 or less and married couples filing jointly are eligible with $96,700 or less.

Organizations: IRS, Finance

☆ Don't wait to find a tax preparer for 2025: Why one expert would '100% recommend starting now'
▼ + stars: | 2024-10-21 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Leopatrizi | E+ | Getty ImagesMost tax preparers don't have credentialsDespite the talent shortage, vetting is important because "pretty much anyone can call themselves a tax preparer," Young said. There are no federal licensing or competency requirements, and some paid preparers have no training or experience, the report noted. Under current law, the minimum requirement for paid professionals is an IRS-issued preparer tax identification number, or PTIN. Free preparation options like Volunteer Income Tax Assistance, or VITA, and Tax Counseling for the Elderly, or TCE, also have competency standards. How to vet your tax preparerUnlike big box preparers, many tax professionals don't accept walk-in traffic and operate mainly by referral, according to Tom O'Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.

Persons: Young, preparers, Tom O'Saben Organizations: Getty, IRS, National Taxpayer, National Association of Tax

☆ The tax code could be in for upheaval. How to prepare your portfolio, per Bank of America
▼ + stars: | 2024-10-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Tax Cuts and Jobs Act (TCJA), which took effect in the beginning of 2018, overhauled the federal tax code. It roughly doubled the standard deduction, adjusted individual income tax brackets , lowered most of the rates and applied a $10,000 cap on the state and local tax deduction. Mutual funds tend to have higher turnover – that is, buying and selling of underlying securities – and by law they must distribute capital gains. Meanwhile, income from Treasurys are subject to federal income tax, but exempt from state and local tax. Seek tax-efficient opportunities for your holdings Take a look at your portfolio and see whether there are opportunities for tax-advantaged yield, Woodard said.

Persons: Jared Woodard, Woodard, MLPA Organizations: Bank of America, Mutual, Bloomberg, ETF, SEC, Muni, MLP & Energy Infrastructure, Global, MLP, MLPX, & $ Locations: U.S

☆ Surge in active ETFs has been 'remarkable,' analyst says. How to know if it's right for your portfolio
▼ + stars: | 2024-10-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But there has been a surge in actively managed ETFs as investors seek lower costs and more precision, experts say. Active ETFs represented just more than 2% of the U.S. ETF market at the beginning of 2019. There are a few reasons for the active ETF growth, experts say. Still, only a fraction of issuers have been successful in the active ETF market. Active ETFs allow 'tactical adjustments'While passive ETFs replicate an index, such as the S&P 500 , active managers aim to outperform a specific benchmark.

Persons: Morningstar, Stephen Welch, Welch, Jon Ulin Organizations: Getty, Exchange, U.S, Morningstar, U.S . Securities, Exchange Commission, Ulin, Wealth Management Locations: Boca Raton , Florida

☆ Week 8’s top 10 college football games: Georgia-Texas, Alabama-Tennessee and much more
▼ + stars: | 2024-10-18 | by ( Justin Williams | ) www.nytimes.com time to read: +10 min

On the heels of two of the more riveting weeks of college football in recent memory comes a jam-packed Saturday that features a trio of SEC headliners, including a top-five clash between blue bloods. There’s also multiple rivalry games that feature boots (sort of), and a potential College Football Playoff showcase in Bloomington, Indiana, of all places. Stream college football on fubo. 17 Kansas State (5-1) at West Virginia (3-3), 7:30 p.m., Fubo, FoxThere are intriguing matchups involving the Big 12’s three ranked teams this week, including Oklahoma State at No. 8 LSU (5-1) at Arkansas (4-2), 7 p.m., Fubo, ESPNIt’s the Battle for the Golden Boot, one of the more underappreciated rivalry names and trophies in college football.

Persons: There’s, James Madison, Cam Skattebo, Sam Leavitt, Jeff Sims, Brendan Sorsby, hasn’t, Red Grange, Benjamin Morrison, Haynes King, King can’t, Zach Pyron, Curt Cignetti, Joe Rexrode, They’ve, Dylan Raiola, Sam Pittman, —, Garrett Nussmeier, Ole, Coach Howard Schnellenberger, — Mark Ennis, Cam Ward, Tyler Shough, Ward, David Ubben, Kennington Smith, Quinn Ewers, Kevin C, Cox Organizations: SEC, Oklahoma, BYU, Clemson, Auburn, Georgia Southern, UCF, Iowa State, fubo, Arizona State, Sun Devils, Bearcats, ASU, UNLV, Oregon State, CW The Rebels, Syracuse, Utah State, Boise State, Broncos, Group, Kansas State, Fox, Oklahoma State, Wildcats, CBS, Purdue, Illini, Red, Wolverines, Notre Dame, Irish, Georgia Tech, North, Navy, Army, USC, Indiana, Hoosiers, Nebraska, Huskers, Ohio State, LSU, ESPN, Tigers, Ole Miss, Razorbacks, Miami, ABC, Cardinals, Louisville Sports Commission, Virginia Tech, Cal, Hurricanes, Louisville, Virginia, FBS, Oregon, Georgia, Getty Locations: Bloomington , Indiana, BYU , Ohio, Miami ( Ohio, Virginia, Missouri , Louisiana, Coastal Carolina, Toledo, NIU , Colorado, Arizona, Cincinnati, Utah, Las Vegas, Corvallis, Oregon, Nevada, West Virginia, Morgantown, Kansas, Michigan, Illinois, . Illinois, North Carolina, Nebraska, Indiana, Bloomington, Arkansas, Louisville, Miami, Tyler Shough . Miami, Alabama, Tennessee, Georgia, Texas, Austin

☆ How to build up your bets – and your returns – in dividend-paying stocks
▼ + stars: | 2024-10-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Dividend stocks could be poised to get their moment in the sun as interest rates fall – and investors only need to take a simple step to boost their long-term returns in these positions. "As rates fall, we might see people looking for longer-term alternatives and, in turn, dividend-paying stocks," he said. For starters, it's a form of dollar-cost averaging into a position, meaning you're buying the stock at regular intervals regardless of the price. "It allows them to reinvest this dividend on a regular scheduled timeframe and have a great opportunity for a larger total return over the long term." The ProShares S & P 500 Dividend Aristocrats (NOBL) has a total return of nearly 15% in 2024 and an expense ratio of 0.35%.

Persons: Dan Stein, Charles Schwab, Jay Spector, That's, would've, you'll, Stein, – CNBC's Chris Hayes Organizations: Federal Reserve, Investors, CFP, EverVest, Machines, IBM, Target Corp, Apple, Broadcom, Microsoft, Exxon Mobil, Internal Revenue Service Locations: Tysons Corner , Virginia, Scottsdale , Arizona

☆ Inherited IRA rules are changing in 2025 — here's what beneficiaries need to know
▼ + stars: | 2024-10-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Jacob Wackerhausen | Istock | Getty ImagesWhat to know about the 10-year ruleBefore the Secure Act of 2019, heirs could "stretch" inherited IRA withdrawals over their lifetime, which helped reduce yearly taxes. But certain accounts inherited since 2020 are subject to the "10-year rule," meaning IRAs must be empty by the 10th year following the original account owner's death. The rule applies to heirs who are not a spouse, minor child, disabled, chronically ill or certain trusts. Since then, there's been confusion about whether the heirs subject to the 10-year rule needed to take yearly withdrawals, known as required minimum distributions, or RMDs. After years of waived penalties, the IRS in July confirmed certain heirs will need to begin yearly RMDs from inherited accounts starting in 2025.

Persons: Jacob Wackerhausen, there's, Dickson, Judson Meinhart Organizations: Istock, Vanguard, Modera Wealth Management Locations: Winston, Salem , North Carolina

☆ Key change coming for 401(k) ‘max savers’ in 2025, expert says — here's what you need to know
▼ + stars: | 2024-10-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Aire Images | Moment | Getty ImagesHigher 401(k) catch-up contributionsEmployees can now defer up to $23,000 into 401(k) plans for 2024, with an extra $7,500 for workers age 50 and older. But starting in 2025, workers aged 60 to 63 can boost annual 401(k) catch-up contributions to $10,000 — or 150% of the catch-up limit — whichever is greater. An estimated 15% of eligible workers made catch-up contributions in 2023, according to Vanguard's 2024 How America Saves report. Roth catch-up contributionsAnother Secure 2.0 change will remove the upfront tax break on catch-up contributions for higher earners by only allowing the deposits in after-tax Roth accounts. That means workers can still make pretax 401(k) catch-up contributions through 2025, regardless of income.

Persons: Jamie Bosse, Vanguard's Stinnett, Roth Organizations: IRS, CGN Advisors, America, Vanguard Locations: Manhattan , Kansas

☆ Here's what to do if you still can't pay taxes on the Oct. 15 tax extension deadline
▼ + stars: | 2024-10-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The tax extension deadline has arrived and there are options if you still can't pay your balance, tax experts say. About 19 million U.S. taxpayers filed for an extension by the April 15 tax deadline, which bumped the filing due date to Oct. 15. However, for federally declared disasters after April 15, filers were not granted more time to pay their tax bill. Penalties and interest on unpaid balances started accruing after the April 15 deadline. If you missed the tax deadline, the late payment penalty is 0.5% of your unpaid balance per month or partial month, capped at 25%.

Persons: filers, Josh Youngblood Organizations: Finance, Youngblood Locations: Dallas

The best way to determine how much house you can afford is by working backward from your current budget. Current mortgage rates: The lower your mortgage rate, the more house you can afford. Where you live can impact home affordabilityHow much house you can afford depends a lot on where you live. How much house can I afford FAQsWhat percentage of my income should I spend on a house? The more debt you have, the less house you'll be able to afford.

Persons: You'll, Brian Walsh, Walsh, you'll, Freddie Mac, that's, it's, homebuyers Organizations: Business, CFP, . Census Bureau, National Association of Insurance, Consulting, homeownership, DTI, Chevron Locations: West Virginia, U.S, Washington, Alabama, New Jersey, Chevron

☆ Interest on cash is tumbling, but these funds might be the next best way to earn some income
▼ + stars: | 2024-10-15 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is about a month into its rate-cutting cycle, and money market fund yields are already starting to pay less. That's where short and ultra-short duration bond funds and ETFs may come into play. An eye on duration Duration is a measure of a bond's price sensitivity when interest rates fluctuate. In that case, ultra-short bond funds and short-term bond funds might be "a natural landing spot for that cash." Those ultra-short bond funds have one to three years of duration and offer some stability day to day, Bartolini added.

Persons: Brett Sheely, Matthew Bartolini, Bartolini, AllianceBernstein's Sheely, —, Vincent Caintic Organizations: Federal, Investment Company Institute, State Street Global Advisors, SPDR, SPDR Americas Research, Bond, SEC, Federal Deposit Insurance Corp, . Locations: SPDR Americas

☆ Some hurricane victims can get a tax break for losses — Here's what you need to know
▼ + stars: | 2024-10-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

You also need to know how much the fair market value declined due to the disaster, she said. How to calculate the casualty loss deduction 1. Congress approves 'qualified disaster losses'In certain cases, "qualified disaster losses" are eligible for special rules, but "that's driven by Congressional action," according to Brennan. When there's a qualified disaster loss, the $100 rises to $500, there is no 10% AGI limit and victims can add their loss on top of the standard deduction. "AICPA has been actively advocating for permanent uniform tax relief for all victims of disasters since 2021 — for almost four years now — because we have this inconsistent treatment," she said.

Persons: David Hester, Hurricane Helene, Chandan Khanna, Mark Luscombe, Beth Brennan, Brennan, You'll, there's, AICPA Organizations: Afp, Getty, Wolters Kluwer, Accounting, American Institute of Certified Public Accountants, Congress Locations: Horseshoe Beach , Florida

☆ This top concern of U.S. retirees is a 'huge risk factor,' says retirement expert—here's how to plan for it
▼ + stars: | 2024-10-14 | by ( Ryan Ermey | ) www.cnbc.com time to read: +8 min

"Long-term care costs are completely outside of our health-care system. Medicaid is a needs-based health-care program, and eligibility requirements to receive long-term care under the program vary from state to state. "You might think about the average duration of long-term care along with the average costs to build a long-term care fund." Long-term care insuranceThe middle path involves buying insurance designed to help pay for long-term care. This can include long-term care insurance or whole life insurance with a long-term care rider.

Persons: Christine Benz, Morningstar, Spencer Look, CNBC's, SurveyMonkey, Yusuf Abugideiri, Yeske Buie, they'll, Gerika Espinosa, you'd Organizations: Medicare, Morningstar, Care Survey, Benz, Medicaid, Centers, Services, American, Aging, Administration for Community, American Association for, Care Insurance, CNBC Locations: U.S, Vienna , Virginia, Salt Lake City , Utah

In 2025, millions of retired Americans will see a 2.5% cost-of-living adjustment for benefit payments, according to the Social Security Administration. The Social Security Administration on Oct. 10 unveiled a higher threshold for earnings subject to Social Security payroll taxes, known as the “taxable maximum” or “wage base.”The limit shifts annually based on the national average wage index. How the Social Security tax calculation worksThe Social Security payroll tax rate is 12.4%, with workers paying 6.2% through paycheck deductions. Concerns over Social Security solvencyThe latest Social Security adjustments come amid growing concerns about the program’s solvency. In the meantime, some advocates have pushed to increase the Social Security wage base to provide more funding.

Persons: Sean Lovison, “, Lovison, ’, Alicia Munnell Organizations: Social Security Administration, Social, Social Security, Medicare, Security, Center for Retirement Research, Boston College Locations: Philadelphia

☆ 3 money moves you can make today to feel wealthy, according to CFPs
▼ + stars: | 2024-10-11 | by ( Judy Lagrou | In Judylagrou | ) www.cnbc.com time to read: +3 min

Luckily, feeling wealthy is less about the money in your bank account and more about your attitude toward the money you already have. In short, your ability to feel wealthy depends on "what your experiences and perceptions on money are." This involves letting go of a well-known number like $1 million and embracing your personal financial journey, she says. Goals such as establishing an emergency fund or improving your credit score, when reached, can help you feel wealthy without having to build a huge net worth. In other words, you don't need $1 million in hand today to feel wealthy — just a plan to grow your money over time.

Persons: Paul Morrone, —, Rachel Elson, Elson, Morrone, There's Organizations: Northwestern Mutual Locations: North Haven , Connecticut, San Francisco , California

☆ Investors face delays moving certain assets from TreasuryDirect
▼ + stars: | 2024-10-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As investors revisit bonds amid falling interest rates, some are encountering longer waits to transfer certain assets purchased via TreasuryDirect, a platform run by the U.S. Department of the Treasury. TreasuryDirect, which sells government-backed assets, experienced a surge in demand in recent years as investors flooded into Series I bonds that offered record-high yields amid elevated inflation. Now, other assets, such as Treasurys, are taking longer to transfer from TreasuryDirect to brokerage accounts. When asked about wait times, the spokesperson said it "depends more on complexity than capacity" and that processing times are "well under one year right now and declining daily." The agency aims to "modernize the retail program in the future" and is designing solutions "with the customer in mind," the spokesperson said.

Organizations: U.S . Department of, Treasury, Street, Finance, Social, Administration, Fiscal Service, CNBC Locations: TreasuryDirect, Treasury's

You don't need to know exactly how you'll use your retirement savings — instead, focus on timing. I recently spoke with my financial planner, Liz Schieck, about investing and saving for retirement. I asked her what she's hearing from clients, particularly millennials and Gen Z clients, about best practices. Current trends around investing and retirementMany new clients at Schieck's firm first reach out because they want to discuss saving for retirement. Schieck believes that you don't always have to know what you're saving for.

Persons: Liz Schieck, —, Schieck, you've, they're, doesn't Organizations: Service

☆ These income-generating assets are paying yields of more than 5%
▼ + stars: | 2024-10-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Preferred securities combine attributes of bonds and stocks. Yields for these instruments can top 5%, and this income may be tax advantaged for investors. Retail investors and preferreds The preferred securities sold to retail investors come at a fixed par value of $25. The iShares Preferred and Income Securities ETF (PFF) has an expense ratio of 0.46% and a 2024 total return, including reinvested dividends, of more than 11%. There is also the First Trust Preferred Securities and Income ETF (FPE) , which has an expense ratio of 0.84% and a total return of 12% in 2024.

Persons: Frank Sileo, Sileo Organizations: UBS Financial Services, UBS, BBB, Poor's, Investors, Securities ETF, Trust Preferred Securities

As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. Typically, bond prices and market interest rates move in opposite directions. While it may be tempting to cling to cash, it will become “less attractive, less productive as interest rates fall,” Ward said. Many corporations leveraged rock-bottom interest rates during the pandemic to strengthen balance sheets and refinance debt, said Ward. As interest rates fall, those longer-maturity bonds should reward investors, experts say.

Persons: ”, Scott Ward, ” Ward, Ted Jenkin, Ward, “, Jenkin Organizations: Federal Reserve, dovish Fed, Fed, Morningstar, Bond, CNBC’s Locations: Birmingham , Alabama, Atlanta, “

☆ As interest rates fall, it's a 'fantastic time' to revisit bonds, advisor says — here's why
▼ + stars: | 2024-10-09 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. However, the Fed policy shift could be good for parts of the bond market, experts say. Typically, bond prices and market interest rates move in opposite directions. "This is a fantastic time to revisit bonds again," said certified financial planner Scott Ward, senior vice president of Compound Planning in Birmingham, Alabama. While it may be tempting to cling to cash, it will become "less attractive, less productive as interest rates fall," Ward said.

Persons: Scott Ward, Ward Organizations: Federal Reserve, dovish Fed, Finance, SEC, Fed Locations: Birmingham , Alabama

☆ Some stocks could see further downside as investors sell to save on taxes, Morgan Stanley found
▼ + stars: | 2024-10-08 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Some of the biggest losing stocks in 2024 could be in for even steeper declines as investors jettison them to save on taxes, according to Morgan Stanley. Such moves, known as tax loss harvesting, helps investors trim their tax bills the next year. Boeing pressure Beleaguered aerospace company Boeing was also called out by Morgan Stanley as likely to see pressure tied to tax loss selling. Morgan Stanley also called out oil service giant Halliburton . Other names on Morgan Stanley's list include Chord Energy , Simply Good Foods and timeshare operator Hilton Grand Vacations .

Persons: Morgan Stanley, Michelle Weaver, Morgan, Jackson Ader, Ronald Epstein, who's, Epstein, Keith Mackey Organizations: Nasdaq, Wall, Computer, Adobe, Boeing, Alaska Airlines, Bank of America, Aerospace, Defense, Halliburton, RBC Capital, HAL, Energy, Hilton Locations: Alaska, Seattle

☆ Your tax bracket may increase after 2025. Here's how it could affect your brokerage account
▼ + stars: | 2024-10-08 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Without action from Congress, trillions of tax breaks enacted by former President Donald Trump will expire after 2025, including lower federal income tax brackets, among other provisions. Higher rates after 2025 could impact some brokerage accounts since investors pay annual taxes on earnings, experts say. If you sell investments that you have owned for one year or less, the profits incur "short-term capital gains," or regular income taxes. Generally speaking, it's good to avoid short-term gains as much as you can. Actively managed mutual funds often trigger capital gains payouts, even when investors haven't sold shares, which can be a costly year-end surprise.

Persons: Donald Trump, Samantha Pahlow, Ferguson Wellman, Shea Abernethy, haven't, Abernethy, Tommy Lucas, Moisand Fitzgerald Tamayo Organizations: Ferguson, Ferguson Wellman Capital Management, Exchange, Investment Counselors Locations: Portland , Oregon, Winston, Salem , North Carolina, Orlando , Florida

☆ For retirees, here's what to do with required withdrawals when you don't need the money
▼ + stars: | 2024-10-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Skynesher | E+ | Getty ImagesFor some retirees, the deadline to take required withdrawals from retirement accounts is approaching — and those who don't need the money have options, experts say. Since 2023, most retirees must take required minimum distributions, or RMDs, from pre-tax retirement accounts starting at age 73. Brokerage assets could be subject to capital gains taxes, whereas pre-tax retirement funds incur regular income taxes. Unlike mutual funds, most ETFs don't distribute capital gains payouts, which can save brokerage account investors on annual taxes. There's no charitable deduction, but QCDs don't count toward adjusted gross income, meaning retirees don't need to itemize tax breaks to claim it.

Persons: Judy Brown, you'll, Berkemeyer, You'll, Karen Van Voorhis, Daniel J, Galli, QCDs, It's Organizations: SC, H, D.C, Abrin, Goodman Financial, Galli & Associates, Galli & Locations: Washington, Baltimore, Houston, Norwell , Massachusetts

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