2020 has thus far been a year filled with economic, social and emotional turbulence and hardship. Fear and uncertainty regarding the forward path of Covid-19 has left numerous corporate income statements devoid of much needed revenue after a decade of indulging on cheap debt, which altered the financial health of many companies. Moreover, bankruptcy filings of companies with liabilities of at least $50 million are on pace to be the most since the recession that followed the financial crisis back in 2008. But the situation would have been much worse had the Fed not instituted an enormous open-ended bond purchasing program, along with numerous liquidity facilities targeted at corporate bonds among other asset classes.
The Planning Quarterly - August 2020
Welcome to our inaugural issue of the Peapack Private Planning Quarterly.
Planning issues arise at every stage of life—the articles here address a few of them. Each quarter, we’ll take a deep dive into topics our clients find meaningful.
Please reach out to our authors—or to any of our investment and planning professionals—with your questions. Our guidance can help you achieve your financial goals.
will my retirement withdrawals be taxed by n.j.?
First, you are correct that Social Security benefits received are not taxable on your state return, while your pension plan distributions of $6,256 most likely are, said Cynthia Fusillo, a certified public accountant with Lassus Wherley, a subsidiary of Peapack-Gladstone Bank, in New Providence. Of course, your salary pre-retirement is taxable.
Fusillo said Thrift Savings Plan contributions are taxed when made. in other words, they are not salary deferrals for New Jersey tax purposes.
“Therefore, when you receive a distribution from your Thrift Savings Plan, that distribution will not be reportable on your New Jersey return since it’s already been taxed,” she said. “This is unlike a 401(k) plan which is a recognized salary deferral mechanism for New Jersey tax purposes.”
Investment Outlook | Second Quarter 2020: Eyes Wide Shut
A severe recession. Massive unemployment. A global pandemic infecting 13 million people. Populist uprisings in search of social justice. Trade disputes growing. Geopolitical tensions on the rise.
Companies abandon earnings guidance. Traders speculate in bankrupt companies. Oil producers commence a price war.
Not, seemingly, the ideal set-up for a major market rally. Especially one following immediately on the heels of a rapid, deep market plunge. Indeed, market participants had to shut their eyes to multiple concerns, to avert their eyes from a plethora of challenges threatening domestic and international political and economic stability.