RPC CPAs + Consultants, LLP (RPC) has merged with the nationally recognized accounting firm of Carr, Riggs & Ingram, LLC (CRI) and our offices will now operate under the name of Carr, Riggs & Ingram.
We will continue our tradition of community support and delivering quality audit, accounting, tax, and consulting services - now with enhanced service capabilities available from a regional firm that is one of the Top 20 firms in the U.S. For more informaiton regarding CRI's 50+ office locations, more than 1,800 professionals, or industry and service specializations, visit our new firm's website at www.CRIcpa.com.
Once upon a time there was a man named Mr. T who was a smart business man. He did some great tax planning with his CPA during his lifetime. He acquired a substantial amount of tax-free investments, and when he sold his business he rolled that money into tax-free bonds, too. So, his plan was to live out his lifetime on tax-free income and leave the investments to his children.
Mr. T also owned some traditional IRAs, but the $2,500 income he received from the required minimum distributions (RMD) was less than his standard deduction and personal exemption and, therefore, would not be taxed. Sound good? Yep, but the story gets even better!
You see, Mr. T’s standard deduction is $6,300 and his personal exemption is $4,050. That means the first $10,350 of his income is not taxed. Mr. T was leaving an extra $7,850 a year in his IRA which would be taxable to his children if something happened to him. So, upon the advice of his CPA, he increased the amount of his annual IRA withdrawals by $7,850.
Mr. T lived long enough that he was able to withdraw all of his IRA, which made for a very happy ending to this story.
Jack Kirkland, CPA
Clovis Office Partner-in-Charge