This is really sucky. --Millions of Californians won't be able to take full advantage of new federal tax incentives to save for retirement and their children's education unless state lawmakers change the state's tax code.Several state legislators plan this week to propose bills to resolve the issue. But the legislation would cost millions in tax revenue and would come as California's budget is already under strain, making passage less than a sure thing.Californians who want to take advantage of higher contribution limits to 401(k) plans, individual retirement accounts, education IRAs and other tax-advantaged savings vehicles are hamstrung, despite last year's federal law allowing them to do so. Already many state employees have been notified that they can't boost contributions to their tax-deferred retirement plans."It doesn't seem right that the law was passed for all Americans but if you live in California, you can't do it," said Rosemary Hart, who works for the Sacramento Municipal Utility District. At the heart of the matter is last year's wide-ranging new federal tax law, which slashed federal income tax rates and mandated that most taxpayers receive a refund check from the U.S. Treasury.The article goes on to say that if Californians do over pay, they could get taxed double. http://www.latimes.com/business/la-000001236jan06.story?coll=la%2Dheadlines%2Dbusiness%2DmanualI'm glad I happened to see this in the LA Times...All this time, I had no idea, and had every intention of contributing 3k to both my husband's and my Roth. If you know other Californians, please make them aware of this.And for those of you CPA's out there, please let us know if you hear that any new laws have passed or that something has changed for us. Thanks.Caat
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<