Abram Claude, Vice President, Columbia Management Learning Center
Abram Claude is vice president of the Columbia Management Learning Center®, the value add program for Columbia Management Investment Distributors, Inc. (CMID) Mr. Claude is a member of the national speaker bureau and has spoken extensively on retirement and education planning topics. He joined the firm* in 2002 and has been a member of the investment community since 1987. Prior to joining the financial services industry, Mr. Claude held several executive roles with nonprofit public policy organizations, served on the staff of a U.S. congressman and was chief of staff for a Massachusetts state senator. He began his career in financial services at Fidelity Investments and held positions with responsibility for capacity forecasting, business analysis, public relations, and product management and marketing for college savings and retirement plans. Mr. Claude earned his B.A. in history from Boston University. He holds the Series 7, 63, 66, 26 and 53 licenses.
Higher earners with taxable investments are most susceptible to triggering the net investment income tax, a surtax of 3.8% that applies to taxable investments. An asset location strategy involves placing a greater percentage of the most tax-sensitive investments in tax-deferred accounts. Retirement plans offer significant opportunities for participants and business owners to reduce taxable income.
For many employees in corporate America, a portion of compensation comes from one or more forms of stock option plans. Compensation income from stock incentives contributes to adjusted gross income, but not net investment income for purposes of calculating the new 3.8% tax on net investment income. The Columbia Management Learning Center is dedicating a
Financial advisors and investors should have a good understanding of what is different about taxation in 2013 and beyond – and how it affects after-tax returns. An asset location strategy should consider the benefits of placing less tax-favored investments under tax-deferred or tax-free registrations in order to increase after-tax returns. The Columbia Management Learning Center
The 3.8% net investment income tax applies to certain trusts and estates. Given the lower income thresholds for reaching higher tax brackets in a trust, it is possible that income or capital gains retained by the trust will be taxed at higher rates than if the income or gains were distributed to beneficiaries. The Columbia
Self-employment income may be included in an individual’s net investment income, or may raise modified adjusted gross income beyond the net investment income threshold. Business owners may be able to reduce exposure to the net investment income tax by establishing a qualified retirement plan, and characterizing a portion of business earnings as pretax contributions to
Small business owners can potentially mitigate the effect of the new 3.8% net investment income tax (NIIT) by establishing or updating a retirement plan for their business. Strategic use of tax-advantaged retirement plans may prevent one from breaking through the MAGI income threshold for the NIIT strategy. The Columbia Management Learning Center is dedicating a
The net investment income tax (NIIT) is a new, permanent tax that is effective beginning in 2013. Investors’ workplace retirement plans, such as 401(k) plans, may offer several opportunities to reduce exposure to the tax. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New
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