RMR Wealth Management, LLC
212.785.4377

       
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Dear John, 

The tax codes are forever changing from year to year and beginning in 2013 you may face two additional taxes resulting from the Health Care Act.  These new taxes will impact you if you are:
  • Single with modified adjusted gross income (MAGI) over $200,000
  • Married and filing jointly with MAGI over $250,000
  • Married and filing separately with MAGI over $125,000
  • The owner of a trust in the highest marginal tax bracket ($11,650+ in 2012)

Medicare Contribution Tax

You and/or your trust will face a 3.8% tax on the lesser of the net investment income or excess MAGI over the thresholds above

Medicare High Income Tax

You will face a 0.9% tax on earned income over the MAGI thresholds above.

There are only two ways to increase profits and that is to cut expenses or increase revenue.  The government has decided to do both.  Is your portfolio ready for the tax hikes?

If you are a passive investor with a portfolio of blue chip stocks paying a dividend, these new taxes will cut into your profit.  If they decide to keep the “Bush Tax Cuts” in place, you will have to pay 18.8% (based on long term capital gains tax) instead of 15% the current rate if you are in the thresholds above.  However, the chances of taxes staying at these levels are unlikely, which means the changes to the tax codes can have a major effect on your investments.  You should be aware that many mutual funds have distributions that cause tax implications even if the fund had a negative return for that given year.

Start thinking about the benefits of tax advantaged investment strategies such as:

  • IRA
  • ROTH IRA
  • Municipal Bonds
  • Annuities
  • Permanent Life Insurance

Schedule a consultation with John J. Fiorito today at 212-785-4377 x224 to talk about what you can do to alleviate taxes in your portfolio.  Remember, “It is not what you earn, but it is what you get to keep”.

BE Prepared, BE Educated, and BE Proactive

As a reminder, RMR Wealth Management will be hosting the 9th Annual Marc Mayer Memorial Golf Tournament on Monday August 27th, to benefit the Multiple Myeloma Research Foundation.  RMR Managing Partner Brian Mayer is a Featured Supporter of the foundation in honor of his late father, Marc.  

Join us for a fun filled day of good food, great golf and lots of laughs at Springdale Golf Club in Princeton, NJ.  Click here to read about the MMRF and about the history of this event.

Please visit www.marcmayergolf.org for the details and registration to this year’s event. If you cannot golf, please join us for the Dinner and Awards Ceremony following the golf.  If you cannot make either, please help us raise funds by donating an item for the auction, sponsoring a hole or just making a contribution to this great cause.

Sincerely, 

 

John J. Fiorito
Financial Advisor
“Retire Comfortably and Remain Comfortably Retired”
www.rmrwm.com

Securities offered through Dinosaur Securities, LLC Member FINRA, SIPC, NFA.

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.  RMR Wealth Management, LLC does not provide legal, tax, or estate-planning advice. For questions about a specific situation, please consult a qualified adviser.   

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