Due to this continued growth, I am happy to announce that we have welcomed two new staff members to our team at Makara & Associates. We would like to introduce you to Stan English and Theresa Cosey. Please feel free to contact them at any time with questions regarding your tax returns or other accounting needs.

As we advance into 2012, the staff at Makara & Associates is continuing to find ways to ensure that you receive unparalleled customer service. In addition to increasing our staff, we have also created online resources which provide you with information and answers to your questions, 24 hours a day, 7 days a week.

Some of these resources include a new website, www.Makara-Assoc.com. This website provides you with in-depth information about various services that are available to you through Makara & Associates. It also includes a “Learn More” page, which outlines common questions about accounting practices, payroll, tax planning, controllership, Social Security, Quickbooks, and much more, providing you with comprehensive answers to these questions. In addition, we have also implemented a Blog site, www.cashflowplanningforlife.com, which further provides tips and informational resources about everything to do with accounting and financial stability for you, your family, and your business.

Again, we thank you for your continued loyalty to Makara & Associates, your referrals, and for your help in making the past 5 years a success. We look forward to many more to come!

Wishing you and your loved ones a wonderful Holiday season and a happy, prosperous New Year!

Sincerely,

Mark Makara and the Staff at Makara & Associates

P.S. You can also connect, follow, or like us on:

• LinkedIn
• Twitter
• Facebook

If so, you have until October 17, 2011 to undo the conversion and recover any tax paid.  You should review your converted ROTH account and compare the balance with the converted amount, if the balance has declined, returning the dollars back to your IRA can save  tax dollars.  If your 2010 return has already been filed, use form 1040X to file for a refund.

For more helpful information, download my free ebook Roth IRA – 8 Quick Helpful Tips or contact me online.

-Mark
Fort Myers & Naples Accountant

According to the DC district court the answer is no.  The court’s decision was based on the facts that the plan administrator didn’t intentionally misclassify the workers and the 401(k) and cafeteria plan documents specified that anyone reclassified as an employee by a court or the IRS wouldn’t receive benefits.  Based on the case it would be wise to review your plan documents with legal counsel to insure being tripped up by this in the future.

Here are 3 more tips to help you sit pretty in retirement. If you need additional assistance with your retirement planning please contact me online or call (239) 384-9688.

-Mark
Naples & Fort Myers CPA

This is a Bonus Tip to the “3 Tips To Help You Sit Pretty In Retirement” eBook.

…make your retirement planning more stable!

You can get:

• Long Term Care Insurance
• Life Insurance
• Disability Insurance

So what exactly will these 3 things do for you?

Well, they will make your 3 legged stool more stable, making it a 4 legged stool!

Cash flow in retirement is always the number 1 topic.

Just when you think you’re home free enjoying retirement with your spouse…BANG!…a life changing event occurs.

The average stay in a nursing home is 2 ½ years with an average cost of $219 per day.

Assisting living facilities carry an average cost of $3,131 per month and a health-care aid will average about $21 per hour.

Keep in mind these are averages and they will vary by state but it will not take long to use retirement assets in the event of a long illness.

Also don’t count on Medicaid; it will not kick in until a majority of your assets have been expended.

So what do you do if you have assets but not enough to cover the cost outlined above? Talk to a financial professional about Long-Term care insurance. It may be the only answer to passing on assets to a surviving spouse and/or your family.

Death of a spouse with a pension generating the majority of the monthly income can also cause problems with cash flow.

Some plans stop paying completely and others reduce benefits to the surviving spouse.

If not planned for, this event can create a major hole in a surviving spouse’s monthly cash flow.

Reviewing all life insurance options is one way to solve this unforeseen crack in your retirement plan.

Disability insurance, which may be difficult to obtain in retirement, should be reviewed at a minimum to see if is it available and at what cost.

If you have any questions, comments or concerns about  retirement planning, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

your social security benefits will factor into your retirement plan.

There a many factors that can affect the amount of benefits that you will get from your social security.

Things such as the age you choose to claim them and the amount of tax that get taken out of them.

So you are going to want to know as much as possible when you start your social security planning.

Good thing that I’ve come up with these 7 tips that will help.

Tip 1 – At What Retirement Age Can I Claim My Social Security Benefits ?

Tip 2 – When Should I Start Taking My S ocial Security Benefits?

Tip 3 – What are the Reduced Benefits of Social Security Due to Earning

Tip 4 – What is the Taxability of Your Social Security Benefits?

Tip 5 – Confused About Social Security Planning – 2 Ideas To Help Clear Things Up

Tip 6 – What are the Social Security Death Benefits?

Tip 7 – What are the Social Security Benefits for Divorced Spouses?

Hopefully these tips have helped you to better understand the benefits that you can receive from social security.

But if you are still confused, it’s okay. Just have a professional explain it to you, like someone from Makara & Associates.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions, comments or concerns about a Social Security Planning, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

This is the 7th tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…for social security benefits on your earnings.

To qualify, your ex-spouse must meet the following guidelines:

• Have been married to you for 10 years
• Have been divorced for 2 years
• Have reached age 62
• Be unmarried and not be eligible for an equal or higher benefit on their own work or another spouse’s work

Disability, survivor, and total family benefits are beyond the scope of this post but are benefits to consider when talking about or planning your eligible benefits.

As with any financial decision,  benefits should be considered as one leg of your complex web of retirement planning.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

Call me at (239) 384-9688 with any questions about Social Security Planning or simply contact me online .

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

This is the 6th tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…what exactly the social security death benefits are.

This may be a touchy subject because who really wants to talk about death?

But it is a necessary part of your social security benefits that you must understand.

If an individual is fully insured at death, a lump sum payment of $255 is payable to their window(er) or minor children that were living with the individual at the time of death.

So you need to make sure that you take this into account if things start looking grim for a loved one.

Planning ahead is the smartest thing you can do…it is your future.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

Contact me if you’d like to know more about social security death benefits or give me a call at (239) 384-9688.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

This is the 5th tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…your social security planning?

It’s okay, because it can be complicated.

So here are 2 ideas that might help you get a better idea of things.

If both spouses are covered under social security, one of the spouses can elect to receive 50% of his or her spouse’s benefit when the other is not at normal retirement age.

This strategy will result in increased benefits later and increased survivor-ship benefit calculations when the first spouse passes away.

Repay all benefits received and restart benefits at a higher benefit amount.

There is a one-time election that can be made and under the right circumstances can pay off with increased benefits to the electing individual and increased survivor-ship benefits.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions about a Social Security Planning, contact me, or give me a call at (239) 384-9688.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

Social security benefits may be taxable…

This is the 4th tip in our series entitled: “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…based on your modified adjusted gross income.

Modified adjusted gross income includes

• Reportable income plus ½ of social security benefits received
• Tax-exempt interest
• Exclusions for qualified US savings bond interest
• Adoption benefits
• Foreign earned income
• Allowable IRA deductions

One notable exclusion from modified adjusted gross income is ROTH IRA distributions. Watch this in the future… as ROTH IRA’s become more popular, planning around distributions from ROTH IRA’s can save tax dollars.

If modified adjusted gross income (MAGI) exceeds the base amount, benefits become taxable.

Single and Head of Household taxpayers base amount is $25,000, up to 50% of benefits will be taxable if MAGI is between $25,000 and $34,000, and up to 85% of benefits will be taxable if MAGI is above $34,000.

Married filing joint taxpayers base amount is $32,000, up to 50% of benefits will be taxable if MAGI is between $32,000 and $44,000, and up to 85% of benefits will be taxable if MAGI is above $44,000.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

Contact me or give me a call at (239) 384-9688 with any further questions about your social security benefits.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

This is the 3rd tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…be aware that earnings above certain limits will reduce future benefits until you reach full retirement age.

You need to know if you will receive reduced benefits due to earnings in retirement.

In 2009, if you work and start receiving benefits before full retirement age, $1 in benefits will be deducted for each $2 in earnings over $14,160.

In the year you reach full retirement age, your benefits will be reduced $1 for every $3 in earnings, until the month you reach full retirement age, above $37,680.

Once you reach full retirement age your benefits will not be reduced no matter how much you earn.

So make sure that you know how much you’re making and if it will affect the amount of money that you will get before reaching full retirement age.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions about reduced benefits or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.