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…
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…
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…