AICPA Personal Financial Planning (PFP)

The House Ways & Means Committee recently released its proposed 2021 tax reform legislation. In this episode of the PFP Section podcast, Bob Keebler, CPA/PFS, covers the changes being considered that would impact income tax planning, including: Funding the IRS and using tax reform to improve social safety nets Additional childcare credits and other dependent care, childcare, and caregiver provisions Increases to the individual income tax rate, capital gains rate, and 3% surtax over certain thresholds Expansion of NIIT to business income when over certain thresholds Cap on the qualified business income deduction under 199A Wash sale rules applying to cryptocurrency Executive compensation deduction limited to 1M deduction and other business reforms Credits for electric vehicles Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  Download the slides to follow along with the podcast Register for our year-end planning webcast that is free with CPE for PFP/PFS members. Access the Proactive Planning Toolkit audio learning to hear about other tax proposals impacting individuals. This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

If you have clients with more than 10 million in their traditional IRAs, Roth IRAs, and vested defined contribution plans, they may have to take distributions to keep the aggregate plan balances below a certain threshold beginning in 2022.  In this episode of the PFP Section podcast, Bob Keebler, CPA/PFS, gets you up to speed related to: The new proposed limits on MEGA IRAs and related forced withdrawals How the numbers work with the 50% test and the 100% test The best planning strategies to keep taxable income under 450k (MFJ) / 400k (S) so that the new rules won’t apply Reviewing Roth conversion rules since this will be a key planning opportunity before year-end Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  In-depth slides to follow along with the podcast The case for making Roth contributions before year-end Register for our year-end planning webcast (free with CPE for PFP/PFS members) Proactive Planning Toolkit (see audio learning for tax reform updates) This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

The latest proposals suggest that the estate tax exemption may revert back to pre-TCJA levels in January, 2022. In order not to lose the estate tax exemption that exist today, it may be necessary to make use of this exemption before year-end for your relevant clients. In this episode of the PFP Section podcast, Bob Keebler, CPA/PFS, fills you in on the estate related reform including: How the estate and gift tax reduction math will work Forcing grantor trusts to be included in the taxable estate Elimination of valuation adjustments for non-business assets Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  In-depth slides to follow along with the podcast Register for our year-end planning webcast (free with CPE for PFP/PFS members) Proactive Planning Toolkit (see audio learning for tax reform updates) Why the spousal lifetime access trust is the go-to strategy This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

If you have been contemplating a Roth conversion for yourself or for your clients, you will want to tune in to this PFP Section podcast episode to hear Steve Siegel’s case for doing this before the year ends.  Steve discusses his top five reasons for doing a Roth conversion in 2021, including: Potential limits on Roth conversions in the future Proposals on elimination of the backdoor Roth Likelihood of higher tax rates in the future SECURE Act 10-year rule Inherited IRA rule limits Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  The Roth conversion decision chart The latest and greatest with Roth conversion planning The Adviser’s Guide to Financial & Estate Planning Register for our year-end planning webcast This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

On September 13th, the House Ways & Means Committee released long anticipated draft legislation which could lead to major tax changes effective January 1, 2022.  In this episode of the PFP Section podcast, Bob Keebler, CPA/PFS, walks you through the key areas of interest so that you can plan ahead with your clients in the event these proposals become law.  Bob discusses: Increases in tax rates over certain thresholds, expansion of the NIIT, a new high-income surcharge, and modifications to 199A Return of the estate and gift tax exemptions to pre-2017 levels and drastic changes in taxation of grantor trusts New IRA rules, including mega IRA contribution limits and RMDs, elimination of the backdoor Roth, and more What this means for clients and the future of planning strategies if the proposals become law Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  Article: Ways and Means releases list of tax provisions for budget bill Legislative text to be incorporated in the budget reconciliation bill known as the “Build America Back Better” Act This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

CPA financial planners are often in a position to be the first to recognize declining cognitive function in a client. Reina Schlager, CPA/PFS, takes you through a summary of her 6-part series so that you can protect your clients financially and ensure a smooth transition of care. She covers: Does an 18-year-old need a durable POA? Client experiences to give you ideas of what to look for with your clients The 9 domains of diminished capacity The 10 warning signs from the Alzheimer’s Association Planning while clients are well Housing alternatives Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  Podcast series: Part 1: Client experiences Podcast series: Part 2: The 9 domains of diminished capacity Podcast series: Part 3: The 10 warning signs Podcast series: Part 4: Planning while clients are well Podcast series: Part 5: Housing alternatives Guide to Retirement and Elder Planning: Healthcare Coverage Planning Guide to Retirement and Elder Planning: Social Security Planning This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

It’s anyone’s guess what will happen with tax laws given all the proposals floating around. If you have clients concerned about losing the estate exclusion available to them today yet they are reluctant to transfer assets outright to children and grandchildren, the spousal lifetime access trust (SLAT) may be the perfect strategy.  Tune in as estate planning expert Steven Siegel, JD, LLM, walks you through the ins and outs of the SLAT technique, including: How the SLAT works to minimize tax and provide asset protection for multiple generations Why it’s not just for the highest net worth clients How to get around the risks of death and divorce Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links. Access Steve Siegel’s 4-volume Adviser’s Guide to Financial & Estate Planning, exclusive to AICPA PFP/PFS members. This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

When you determine that your client needs a plan for transition of care, you will discover that there are endless options.  In part 5 of this PFP Section podcast series, Reina Schlager, CPA/PFS, helps you sift through the pros and cons of each so that you can best guide your client. She discusses: Home and respite care Ranges of care facilities and how to select the best one Considerations with a couple Keeping humanity and kindness at the forefront Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  Access parts 1 through 4 in this series here. Guide to Retirement and Elder Planning: Healthcare Coverage Planning Guide to Retirement and Elder Planning: Social Security Planning This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

Investment decisions are often made based on unconscious biases and motivations. When we help our clients understand the why behind their money, they will be able to make informed choices. In this episode of the PFP Section podcast, Join Bob Stammers, CFA and Director of Investor Engagement at CFA Institute and Lisa Kueng, Managing Director at Invesco Global Consulting as they discuss:   Lessons we can learn from Sigmund Freud and athletes Using visualization techniques to understand subconscious thoughts The neuroscience between envisioning ourselves doing something and acting on it An example of how you can do this for your clients Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links.  Article: Investing lessons from Sigmund Freud This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.

Putting a plan in place prior to recognizing dementia in your clients is ideal.  In part 4 of this PFP Section podcast series, Reina Schlager, CPA/PFS, discusses the following: Why it’s important to act while your clients are healthy Planning documents and other considerations Preserving dignity for the impaired client What can go awry and how to avoid Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit http://pfplanning.libsyn.com/ to access show notes with direct links. Access parts 1 through 3 in this series here. Guide to Retirement and Elder Planning: Healthcare Coverage Planning Guide to Retirement and Elder Planning: Social Security Planning This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.