It's tax time again, and remember this year Linsco/Private Ledger has added Gain/Loss information to your 1099 forms. This will help streamline the information-gathering process for you, our clients. The enhanced 1099s, along with the information on your year-end statements, should summarize most of the investment information required for your taxes.

Often, in the search for eligible tax deductions this time of year, people with any earned income will look to make a deductible IRA contribution. For 2005, the regular IRA contribution limit for those under age 50 was $4000. Those over age 50 were eligible for a "catch up" contribution of $500, allowing them to make a total IRA contribution of $4500. 2006 promises some new advantages. Though the regular contribution limit remains at $4000 for 2006, the over age 50 "catch up" amount increases to $1000, which means for tax year 2006, those over age 50 can contribute up to $5000. Also note that for regular and Roth IRAs, the deadline for making a contribution for the last tax year (in this case 2005) is actually the tax filing deadline (April 15th); if it is necessary to file an extension, the contribution must be made by the extension deadline.

If you are over age 70 1/2 and must take a required minimum distribution from your retirement assets, tax time presents a good opportunity to evaluate your situation with your tax professional, and plan how you may want to take your distributions and under what sort of tax withholding. For some, withholding is not a major issue, but for those with sufficient income and/or tax implications, it is imperative that some withholding be considered to offset what taxes may be due on the withdrawals.

Should you require any additional information, or any clarification, we are more than happy to provide you, your tax preparer, or your CPA any resources that we have available. If you would like us to correspond directly with your accountant or CPA, please feel free to give us his or her contact information. We'll work together to best serve you and then keep the information on file for your future needs.