Theresa Arndt, CPA

If you can afford health insurance but choose not to buy it, you must pay a fee called the individual shared responsibility payment.  You might also see it referred to as the "penalty," "fine," or "individual mandate." But you may be wondering, "Which costs less, health insurance or the penalty?" That is a good question since the decision of whether you will purchase health insurance for 2016 needs to be made NOW.   If you want coverage to begin January 1, 2016 your last day to sign up is December 15th.   Also, many people are under the false impression that the tax penalty is only $95 and that it's cheaper to pay the penalty rather than purchase health insurance.     So what is the tax penalty for not having insurance in 2016?  Let's find out. As the table above shows, you will pay… Either a fixed fee  OR   a percentage of your income, whichever is  greater . The fixed fee penalty usually hits low income families

In most cases, your retirement accounts including a 401k are protected from your creditors in bankruptcy.  What Happens to my Property in Bankruptcy?  Many people mistakenly believe that they will have to give up almost all of their property if they file bankruptcy relief.  While a Chapter 7 bankruptcy trustee has the power to liquidate your nonexempt assets to pay back creditors, state and federal laws provide exemptions that protect a certain amount of your property in bankruptcy. Specifically, retirement accounts have some of the broadest protections in bankruptcy. Are 401k's Excluded Property in Bankruptcy? 401k and other retirement accounts that are qualified under the Employee Retirement Income Security Act (ERISA) are typically not part of your bankruptcy estate.  This means they can't be taken by the trustee to pay your creditors.  Most employer sponsored retirement plans are ERISA qualified. But if you are considering filing for bankruptcy, check with your e