14 THE QUEENS COURIER • MARCH 2, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM “Over Two Decades Of Personalized Service” LJC@loucarino.com Call Now & End Your Tax Nightmare! �������������������������������������� �������������������������������������� �������������������������������� �������������������������������������������������� ������������������������������������������ Co-Author of the best selling book “Breaking the Tax Code” �������������������������������� �������������������������������� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor ���������������������������������������������������������������� ������������������������������������������������������ TAX TIPS The Baby Boom Generation Problem and Opportunity BY JOHN SAVIGNANO The Baby Boom generation has brought with them a host of new planning concerns and opportunities for advisors. Th e early boomers are retiring and seeking our help with tax planning, social security and Medicare planning, retirement plan rollovers, stock option planning and estate planning. Baby Boomers’ retirement income will be less certain and have fewer guarantees than that of many earlier retirees because of the shift away from “traditional” defi ned benefi t pensions. Many boomers postponed retirement saving well into their 40s and 50s. Many say that saving for kids’ college tuition has taken precedence over saving for retirement. Longer life expectancies, exploding health care costs, dismal personal savings, fl eeting pension plans, possibly insolvent entitlement programs, eldercare responsibilities and an overspent government that is on economic life support are set to collectively unleash their singular forces. But add to the mix the “mother of all demographic shift s” as Baby Boomers enter retirement, and we could get an asset meltdown that could be felt far and wide for decades. If it’s true that Baby Boomers drove up the value of assets like houses and stock because of their voracious buying behavior, would then the future sale of Boomer homes and withdrawal from their retirement accounts similarly cause those assets to decline? It’s possible that if Boomers try to sell their assets - stocks, bonds and real estate - in a desperate eff ort to keep up their pre-retirement standard of living, there may not be enough willing buyers as the ratio of working-age people to retirees’ declines over the next three decades. Complicating the problems for Boomers is the fact that they may be dealing with four generations of family - their parents, themselves, children and grandchildren. All may have varying degrees of need, not to mention the Boomers’ need to care for themselves! Borrowing From Your IRA Watch out if you plan to “borrow” from your IRA for short-term cash needs. Your IRA can’t actually lend you money, but you can get around this rule by withdrawing the funds and quickly restoring the identical amount to the account. Th e money must be returned within 60 days or the distribution is taxed, and also is hit with a 10% early payout penalty if you have not yet reached age 59 1/2. IRS frowns on waiving the 60 day period, as a recent private ruling shows. It refused to give more time to a woman who tapped her IRA to buy her daughter’s home, which was in foreclosure. She intended to replenish her IRA funds with the proceeds from selling a vacation home, but the sale wasn’t complete within the 60 day period. Note that a recent change limits the 60-day rollover gambit to once a year. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. For questions, dial 718-707-0955.
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