January
2010

View the e-Compass online @: www.multop.com/e-Compass

Introduction

Tax Season once again!  Our office has been buzzing with activity as we get ready to do your taxes!  For existing clients, the pre-scheduled appointments and organizer packages will be arriving at your door any day.  For those of you who live outside of Bellingham, you will be receiving a mail-in package, but if you are inclined to visit our office for a face-to-face meeting, please call for an appointment; we would love to see you!  And for those of you who are not currently using our tax preparation services, we would love to have you as a new client!  With all the recent tax law changes (some of which are highlighted below) and more coming down the pike, you might want to consider using a professional tax firm.  Saving taxes is a major component of increasing your net worth!

As the holidays come to a close and kids are back in school, we want to remind you that Multop Financial clients (tax or financial planning) can nominate students, whether family or friends, for the Multop Financial Scholarship. Our $2,000 Scholarship is offered each year to one student enrolled in full-time study at an accredited institution of the student’s choice.  The winner is determined by our Client Advisory Board, based on the application, essay and general impression.  Applications must be received by us no later than March 31st, 2010. For further details you can download the scholarship application from the link below.

Multop Financial Scholarship

 


Financial Tip – Roth IRA Conversion

Roth IRAs allow investors to invest after-tax dollars today, and withdraw both their principle investment and earnings in the future tax free.  Unfortunately there are income limits that disallow contributions for some that earn “too much.”  In 2010 those earning $120,000 (singles) or $176,000 (married filing jointly) are ineligible to contribute to a Roth IRA.

A Roth IRA conversion can allow some investors who have been unable to fund a Roth IRA in the past, to invest in one today by moving “pre-tax” dollars from an IRA or old 401k to a Roth IRA.  Normally those who earn more than $100,000 and want to convert a Traditional IRA to a Roth IRA would be out of luck.  However in 2010 due to the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), the income test no longer applies.  Any amount that is converted will be taxed as income in the year it was converted.  However in 2010 the investor also has the option of spreading that tax liability equally over 2 years, 2011 and 2012.  This can ease some of the tax shock.


Tax Tip – 2009 Tax Law Updates

In early November 2009, Congress passed a bill with several significant tax changes, including the extension of the homebuyers’ tax credit and the expanded loss deduction for businesses.  Many of these stimulus provisions expire after 2010 so it is important to take advantage of these tax breaks.

For every new tax bill that makes it through Congress, some will benefit your situation and some will increase the burden. Even if your tax burden increases due to the new 2009 changes, most likely there are ways to rearrange your personal and business affairs to minimize any additional burden for 2010.  For more information or to speak with a tax specialist, please call Multop Financial at (360) 671-7891.

About Multop Financial

Multop Financial is comprised of Financial Advisors, Tax Specialists and CPA's working together to provide financial management over a client’s lifetime.  We employ a team approach to ensure the continuity of your planning.  What can we do for you today?

www.Multop.com

Advisory services offered by: Pacific West Financial Consultants, Inc.
Registered Investment Advisor
Securities offered through:
Pacific West Securities, Inc.

Member FINRA/SIPC

Upcoming
News & Events


Multop’s New
Tax Specialist
Diane Tate, EA, CFP

We are very pleased to introduce a new member of our Tax Team. Diane Tate will be bringing her outstanding expertise and warm personality to Multop Financial, beginning this tax season. She will be meeting with and getting to know many of our tax clients, and we couldn’t be more pleased to have her with us.  Diane received her designation as a Certified Financial Planner Practitioner in 1988 and continued her education in the field of finance and tax by obtaining her Enrolled Agent certification in 1994 and securities licenses Series 6 and 65 in 1995.

Diane has worked as a tax preparer for the past 15 years and also served and belonged to organizations such as the California State Enrolled Agent Association and the Washington Association of Accountants as well as Rotary International.


Tax Planning
2009 - 2010

Download the new
Multop Financial 2009 – 2010 Tax Planning Guide

Ask A Question

With a fresh new look, and more useful information than ever before, we hope you will visit www.multop.com today, and come back regularly for news, inspiration and whenever you need to ask us a question (see the orange box at the top of each page!)   


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Multop Financial
2210 Rimland Drive,
Suite 101

Bellingham, WA 98226

Phone: (888) 671-7891
Fax: (360) 671-4963
Email: info@multop.com

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