Client Friendly Reminders

6 Steps to Protect Yourself Against Identity Theft and Cyber Fraud

 Besides being the gateway to the Thanksgiving season October is National Cyber Security Awareness Month.  At home and at work, our growing dependence on technology requires greater awareness and action plans to protect against online risks.

I distinctly remember the sinking feeling in my stomach when I recently discovered a thief had obtained personal information and made online purchases on my credit card.  I was routinely reviewing the statement and I did not expect to see anything out of the ordinary and then boom – there it was.  Several unidentifiable transactions right in front of my eyes.  

Identity theft can occur anywhere and anytime.  

Here are some practical suggestions to help you keep cyber security top of mind:

  • Review your credit report periodically to be on the lookout for fraudulent activity.  Free credit reports from each of the three major bureaus (staggered quarterly for year-round monitoring) are available annually at www.annualcreditreport.com
  • Optional fee-based services are available for a cost to provide convenience for those who don’t want to personally monitor their information. 
  • Monitor bank and credit card accounts at least weekly
  • Be vigilant about keeping sensitive information from prying eyes in public places
  • If you file taxes electronically – review the security policy with your tax preparer
  • Stop hackers by using strong passwords. 

Spending a little time to protect your information can help you avoid all of the hassle of being a victim. Feel free to contact your Center Planner with follow up questions.

Any opinions are those of Laurie Renchik and not necessarily those of RJFS or Raymond James.  Links are provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors.  Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Michigan Lowers Required Tax Withholding for IRA Distributions

 The Good News: 

If you are currently taking distributions from an IRA account the minimum withholding tax rate just dropped.  Effective October 1, 2012 Michigan taxpayers have the option to reduce withholding tax from the current minimum of 4.35% to 4.25%.

More Good News:  

Changing your Michigan withholding tax amount is far less complicated than the Tax Code.  Signing a new IRA distribution form to authorize the change is all that is needed. 

Thinking About Making a Change:  Please contact your planner if you currently have an IRA distribution schedule in place and want to discuss making a change to your Michigan withholding tax.

Note:  You should discuss any tax or legal matters with the appropriate professional.

Important October Dates Are Quickly Approaching

 Fall is in the air. The hot days of summer are behind us. It’s getting darker earlier and kids have headed back-to-school. Saturdays are filled with non-stop college football and Sundays the NFL. With all those distractions, it’s easy to miss some important dates that are quickly approaching, but we want to make sure you don’t. So, don’t forget:

October 1, 2012: 

  • Deadline to establish SIMPLE IRA Plan for the 2012 Plan Year
  • Deadline to set up a new Safe-Harbor 401(k) plan for 2012 plan year
  • If you attain age 50 or over on or before December 31, 2012 October is a good time to consider making pre-tax catch-up contributions to your 401(k) - up to $5500 for 2012. 

October 15, 2012:

  • Self-employed business owners have until October 15 to establish a SEP IRA for 2012 
  • Last day to re-characterize your Roth IRA conversion if there is a loss
  • Medicare open enrollment begins, ending Friday December 7th
  • Final day to file your tax return if you have an extension

For help with any of these, please contact your Center planner for additional information. Then you can get back to enjoying fall for all its worth! 

There's Still Time to Contribute to an IRA for 2011

There's still time to make a regular IRA contribution for 2011! You have until your tax return due date (not including extensions) to contribute up to $5,000 for 2011 ($6,000 if you were age 50 by December 31, 2011).

For most taxpayers, the contribution deadline for 2011 is April 17, 2011. Normally, your federal tax return must be filed by April 15. However, the IRS has extended the deadline to April 17 this year because April 15 is a Sunday, and April 16 is a holiday in Washington D.C. (Emancipation Day).

You can contribute to a traditional IRA, a Roth IRA, or both, as long as your total contributions don't exceed the annual limit. You may also be able to contribute to an IRA for your spouse for 2011, even if your spouse didn't have any 2011 income.

Changes to Mutual Fund Cost Basis Reporting

As of January 1, 2011, a new law - part of the Economic Stabilization Act of 2008 - requires Raymond James (along with all broker/dealers, banks, custodians and transfer agents) to capture and report to the IRS detailed information on covered securities sales. 

  • This change only affects taxable accounts.
  • To select the average cost method, a signed Cost Basis Election form will be submitted to Raymond James on behalf of Center clients.
  • Center clients will receive a letter outlining important details and the Cost Basis Election form by email or regular mail in the month of November.

 Please feel free to contact your planner at 248-948-7900 with questions. 

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