Financially Speaking

Same-sex marriage and retirement plans

Wed, 12/10/2014 - 2:30am

Now that the Supreme Court has invalidated the Defense of Marriage Act—the law that defined marriage as a union between a man and a woman—the Internal Revenue Service has been clarifying the rules about the federal tax status of same-sex couples.
In states that still do not recognize same-sex marriage, on the other hand, state tax laws still require those individuals to pay state taxes as single persons.
New federal tax rules now require that qualified retirement plans must recognize same-sex spouses of participants as of June 26, 2013. If the plan's wording is not consistent with the new rule, it must be amended to comply with the new rules; plans must adopt the new wording by December 31 of this year. Although the ruling specifies the June 26, 2013 date (when the Supreme Court ruling was made), plans can choose an earlier date. Some fiscal-year plans may have until early 2015 to update.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/