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Archives for January 2024

Magone & Company and Wurdemann, Pinto & Company Finalize Letter of Intent

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NJ CPA firm Magone & Company, a leading tax & advisory practice located in Roseland, NJ, has announced the signing of an agreement to join forces with Hackensack, NJ-based CPA firm Wurdemann, Pinto & Company.

According to managing partner Nick Magone, “What drew us to Wurdemann, Pinto was the firm’s similar company culture and business philosophy, as well as their complementary strengths in Client Accounting Services (CAS) and advisory services for C-suite executives. We are like-minded in our client-centric approach, and we’re excited for the opportunities that lie ahead in 2024.”

Wurdemann partner Steve Pinto also looks forward to combining forces with Magone & Company to grow both firms’ capabilities. He says, “Nick’s firm has proven expertise in international tax, attestation services and advising entrepreneurs on operational and financial matters. They’ve also made significant investments in technology, training and staff over the last few years. We’re glad to introduce our clients to these expanded services.”

The agreement is scheduled to take effect on May 1, 2024, and the combined firm will employ approximately 40 people.

Headquartered in Roseland, the NJ CPAs at Magone & Company, P.C. bring a unique 360° perspective to the practice of accounting and business consulting. The firm supports leading entrepreneurial companies, non-profits, international firms, medical/dental practices, technology companies and the real estate industry with a complete range of accounting, audit & attestation, tax, wealth management, and business consulting services. For more information, visit MagoneCPAs.com or call (973) 301-2300.

How Qualified Charitable Distributions can Fulfill RMD Obligations

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When saving for retirement, tax advantages play a significant role. Traditional individual retirement accounts (IRAs) and employer-sponsored retirement plans such as 401(k)s offer tax-deferred growth, so you don’t pay taxes on the investment gains — as long as the money stays in your account.

However, the IRS doesn’t want you to avoid paying taxes on these funds indefinitely.

If you’re approaching age of 70½, required minimum distributions (RMDs) will help ensure that you start withdrawing money from your tax-deferred retirement accounts and pay the appropriate taxes on those distributions. But did you know that a qualified charitable distribution (QCD) can fulfill your RMD obligations while avoiding taxes on the distribution?

The ABCs of a QCD

A QCD refers to a taxable distribution that is paid directly from an IRA to a qualified charity. According to the IRS, this includes nonprofit groups that have a charitable, educational, religious, literary or scientific purpose, or that work to prevent child or animal cruelty.

When a QCD is directly paid from your retirement account to an eligible charity, it’s not included in your taxable income, meaning the distribution is tax-free. The giver must be at least 70½ at the time the QCD is made.

Because it’s tax-free, you cannot deduct the QCD on your Schedule A as an itemized deduction. In order to claim that charitable contribution deduction, your total itemized deductions must exceed the standard deduction. Keep in mind, the increased income resulting from the distribution could impact your eligibility for certain tax credits and push you into a higher tax bracket.

Questions regarding qualified charitable distributions? Let us help you with tax planning to minimize your tax burden and make the most of charitable giving. Reach out to the tax experts at Magone & Company or call us today at (973) 301-2300 for an evaluation of your tax situation.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your unique circumstances.