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Protecting Your Retirement Plan From the New Death Tax – Begley Report

SECURE ACT The SECURE Act passed by Congress and signed by President Trump became effective on January 1, 2020.  The provisions of the SECURE Act apply to Qualified Retirement Plans and IRAs.  The law is designed to raise approximately $16 billion for the Treasury, and to prevent retirement plans for being used as wealth transfer vehicles.  Unfortunately, the…

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INCOME TAXATION OF EMOTIONAL DISTRESS CLAIMS

by Thomas D. Begley, Jr., Esquire, CELA Questions frequently arise with respect to the taxation of emotional distress claims.  As a general rule, damages for emotional distress are subject to income tax.  However, a careful analysis can result in the elimination of this tax.   Emotional Distress             Emotional distress has been defined as a highly unpleasant emotional reaction…

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ARE LEGAL FEES IN PERSONAL INJURY RECOVERIES TAX DEDUCTIBLE TO THE PLAINTIFF?

by Thomas D. Begley, Jr., Esquire, CELA [Article originally published in The Barrister, Jan 2020] As a general rule, personal legal fees are not tax deductible, but legal fees in connection with business are deductible.  So, if a client gets divorced, this is personal and the legal fees are non-deductible.  If legal fees are paid in connection…

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Qualified Settlement Funds – Begley Report

by Thomas D. Begley, Jr., CELA WHAT IS A QUALIFIED SETTLEMENT FUND? Section 468B of the Internal Revenue Code[1] authorizes the establishment of Designated Settlement Funds or Qualified Settlement Funds.  These funds are usually collectively referred to as Qualified Settlement Funds (QSFs).  These funds are also sometimes called 468B Trusts.  The purpose of these funds…

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