What are Hardship Withdrawals from my 401(k)?
The IRS Code allows for certain penalty-free withdrawals, and gives the plan administrator the freedom to define certain other hardship exemptions. Certain kinds of retirement plan withdrawals are excluded from the 10% early withdrawal penalty tax. These include medical expenses which exceed 7.5% or 10% of Adjusted Gross Income, distributions to the family members of active duty military personnel who have been called to active duty, and distributions needed if the participant becomes disabled. Continue reading...
Do I Need Professional Help to Prepare a Trust?
In most cases, you should consult a tax professional and/or an estate planning attorney for help in setting up a trust. If you’re setting up a trust in the first place, it is likely because you have estate planning needs – which also means you have a level of assets that requires estate planning. Preparing a trust on your own runs the risk of setting it up incorrectly, which can lend itself to legal risks such as challenges from heirs and/or creditors. Continue reading...
What is Earnings Before Tax (EBT)?
Earnings before tax (EBT) is used to look at cash flows after expenses but before taxes. In a world without tax, this is what earnings would look like. Taking advantage of an advantageous tax-event, or hiring a better CPA, or merging with a company that can reduce the tax implications of some regular transactions, can bring earnings closer to their before-tax amount. Earnings before tax from an accounting standpoint is net income (which is another word for earnings) with taxes added together with it. Continue reading...
What is an Earnings Recast?
An earnings recast is a revision of previous earnings reports, in which a company has made different choices with their accounting methodology that they feel are a better representation of their accounts. A common time to do this is after a company has divested itself of a subsidiary, when it will publish recast financial statements from the preceding years that show the company’s performance without the subsidiary being included. Continue reading...
What is the Home Affordability and Stability Plan (HASP)?
HASP came into being in 2009 in response to the housing market crash that made life very difficult for many Americans. Also known as the Making Home Affordable Plan. It called for the creation of various programs and support for lending institutions, consumers, and Fannie Mae and Freddie Mac. The Homeowner Affordability and Stability Program (HASP) has three main parts. Part one is to aid responsible homeowners who are suffering from falling home prices and have become underwater on their mortgages. Continue reading...
What are the IRS Guidelines for Filing a Form 4868 Tax Return Extension?
IRS Link to Form — Found Here An individual can automatically have their tax return due date extended by 6 months by filing a Form 4868. Tax returns are generally due by April 15, so this gives a person until October 15 to have the 1040 return submitted. This also goes for other tax return forms such as 1040-A and 1040-EZ. Please note that the IRS expects your taxes to be paid by April 18th, using your best-guess at what you owe, in order to avoid additional charges. People often do not have their tax returns completed by April 15, for various reasons. Continue reading...
What are Multichains and Sidechains?
Sidechains are blockchains which handle assets off of the main blockchain and are able to return them to the main blockchain at a future date. As you understand by now, blockchains are comprised of interconnected computers serving as nodes in a decentralized consensus network. Everything that happens to assets on that blockchain is validated and recorded on that blockchain. If assets are taken to another chain, however, where different protocols may apply to suit the needs of the parties using the assets, this may be called a sidechain. Continue reading...
What is a Jumbo Loan?
A jumbo loan is a mortgage loan that exceeds the conforming loan limits set by the Office of Federal Enterprise Housing Oversight. For borrowers with low debt to income ratios and good credit scores, jumbo loans are often utilized for purchases of larger or luxury homes. Often times jumbo loans are too large in size to be guaranteed by Fannie Mae and Freddie Mac, and are securitized in other ways. Continue reading...
What are Articles of Incorporation?
Articles of Incorporation must be filed with the Secretary of State’s office before a corporation can do business in a state. Articles of Incorporation are legal documents which contain descriptions of the most pertinent information about a company at its formation. This includes a list of board members, the number of shares to be issues, bylaws, business model, facilities and assets, and so forth. Continue reading...
What is a market-with-protection order?
A market-with-protection order starts out as a regular market order to buy or sell at the market price. This kind of order will cancel the remainder of the order if the price moves before the entire order is filled, and it is immediately re-entered as a limit order with a price just above or below the market price. A market-with-protection order allows investors to hedge against the change that prices will move unexpectedly before their entire order is filled at the desired price. So an investor would submit an order to be executed at the current market price, and then, if the price moved, the order would automatically cancel the rest of the order and resubmit it as a limit order. Continue reading...