Tax Season in Full Swing with New Interns

It is Saturday morning; you wake up and look outside to find that your car is covered in about a foot of snow.  You check your mobile device to find that, with the wind chill, it feels as though it is -19 degrees, thanks Polar Vortex!  You want to get up and get moving, but it seems as though you just do not have the willpower to leave your home.  Then, all of a sudden, a light bulb flashes above your head with the most brilliant idea you have had thus far, for the year 2014. You say, “I just received my W-2 and 1099 in the mail, I have all the documents I need.  How about I start filling out my tax organizer and get a head start on the process.”  At this point the sun comes out, trumpets sound, and CPAs across the nation stand and applaud just for you, to thank you for being diligent and timely with your tax information.

With all of the tax returns we do as a firm, we like to reach out to local universities and select a few students to take part in our Tax Internship Program.  The program allows a few select students to be fully immersed with our tax process and receive great hands on experience in regards to understanding, preparing, and reviewing tax returns.  Our founder had a strong belief in young professionals, and that is a belief we hold true today.

This year we are excited to announce two new interns to C.H. Dean:  Heather Burton & Mary Whittington.

 

Name:    Heather Burton
Major/Concentration:  Accounting and Finance Major
College:   Wright State University
Hometown:   Portsmouth, Ohio
My favorite things:   Modern Family, Subway, Reading
Favorite quote:   “’Things don’t get easier, you get better.’”
The last thing I read:  The Divergent Series
Guilty pleasure:  Reality TV
I can’t live without:  Grace Kelley (My Cat)
Best advice you ever received: Don’t sweat the small stuff.

 

Name:    Mary Whittington
Major/Concentration:  Accounting and Management Information Systems
College:   University of Dayton
Hometown:   Columbus, Ohio
My favorite things:   Racquetball and Nutella
Favorite quote:   “Count your blessings.”
The last thing I read:  The Great Gatsby
Guilty pleasure:  Pinterest
I can’t live without:  Starbucks and Diet Coke
Best advice you ever received:  Everything is a learning opportunity

Meet the New C.H. Dean Tax Interns

It is that time of year again when W-2’s and 1099’s are all on everyone’s mind.  Yes, you guessed correctly, it is Tax Season.  Here at C.H. Dean we take great pride and care into every tax return we do.  From an individual to a corporation, we work hard to ensure your taxes are done on time and correctly.  C.H. Dean actually started out with our company’s founder, Chauncey Dean, sitting out on picnic tables filling out and completing tax returns.  The company later expanded to the entities you know today that help with a wide range of wealth management that include accounting and payroll needs, 401(k) and pension, family office, private investments, and personal financial planning.

With all of the tax returns we do as a firm, we like to reach out to our local universities and select a few students to take part in our Tax Internship Program.  The program allows a few students to be fully immersed with our tax process and receive great hands on experience in regards to understanding, preparing, and reviewing tax returns.  Our founder had a strong belief in young professionals and that is a belief we hold true today.

This year we are excited to announce two new interns to C.H. Dean:  Kendra Vennekotter & Chris Cowlen.

Name:   Kendra Vennekotter
Major/Concentration:  Accounting & Finance
College:  University of Dayton
Hometown:  Miller City, Ohio
My favorite things:  Doctor Who, Sweatpants, Country Music, Mom’s Meatloaf, Jeopardy, Coffee
Favorite quote:  “Life is not about waiting for the storm to pass, it’s about learning to dance in the rain.” –Anonymous
The last thing I read:  The Hunger Games
Guilty pleasure:  Fast Food
I can’t live without:  My Sisters
Best advice you ever received:  God helps those who help themselves.

Name:  Chris Cowlen
Major:  Accounting
College:  University of Dayton
Hometown:  St. Louis, MO
My Favorite Things:  St. Louis Cardinals, Baseball, College Basketball, Sandwiches
Favorite Quote:  “It doesn’t matter, it’s in the past.” – Rafiki from The Lion King
Guilty pleasure:  Taco Bell
I can’t live without:  Being able to watch the Cardinals
Best advice you ever received:  “You’re never too old to hug your Dad.” –My Dad

IRA Rules and FAQs

IRAs are a common investment tool that many people use within their portfolios.  But like with any tool, knowing the ins and outs of how they can be used can be tricky at times.  Below are some frequently asked questions as well as some general rules when it comes to an IRA.

Tax Legislation Updates: Qualified Charitable Distributions are available for 2011 but have not been extended for 2012 and future years.

Tax extension legislation in 2010 included an extension of Qualified Charitable Distributions from IRAs through 2011 only. As of December 13, 2011, there have been no additional extensions of that legislation for 2012 and future years. This allows eligible customers to direct distributions from their IRAs to qualified charities and have that count toward the MRD for the tax year 2011. For the tax year 2011, customers have until December 31, 2011 to make a QCD that would count towards their 2011 MRD. Customers may make distributions totaling up to $100,000 to qualified charities for 2011.

What are Minimum Required Distributions (MRDs)?
Beginning for calendar year in which you turn 70½, you are generally required to withdraw a minimum amount of money from your tax-advantaged retirement accounts each year. This amount is called a minimum required distribution, or MRD. Note that you can always take more than the MRD amount.

You generally have to take MRDs from any retirement account in which you contributed tax-deferred assets or had tax-deferred earnings. These accounts include:

  • Traditional IRAs
  • Rollover IRAs
  • SIMPLE IRAs
  • SEP-IRAs
  • Most Keogh accounts
  • Most 401(k) and 403(b) plans

 

Are there any exceptions?
Roth IRAs are an exception. You are not required to take MRDs from a Roth IRA during your lifetime, nor can you satisfy your Traditional IRA MRD requirement with a withdrawal from a Roth IRA. Also, if you continue to work beyond age 70½, and do not own more than 5% of the business you work for, you may be able to defer taking distributions from your current employer’s Keogh, 401(k), 403(b), or other employer-sponsored retirement plan until April 1 of the calendar year after the year in which you retire. Please consult your plan administrator to learn more.

How should I handle year–end transfers or rollovers?
The December 31 market value of each of your retirement accounts should be adjusted for any pending year end transfers or rollovers. For example, if assets were withdrawn from an IRA or qualified employer-sponsored plan within the last 60 days of the prior calendar year, and then a portion or all of those assets were rolled over to an IRA this year, you must add the amount of the rollover to the balance of your IRA as of December 31 of the prior year. This may also apply to year-end transfers not credited to your account until after December 31, unless the MRD attributable to the amount transferred was distributed from another IRA.

How are MRDs taxed?
MRDs are taxed as ordinary income for the tax year in which they are taken and will be taxed at your applicable individual federal income tax rate. MRDs may also be subject to state and local taxes. If you made nondeductible contributions to your IRA, you must calculate your MRD based on the total balance, but your taxable income may be reduced proportionately for the after-tax contributions. Please consult a tax advisor to learn more.

What if I made non–deductible contributions to my IRA?
Regardless of whether or not you made non-deductible contributions, you must use the MRD. If you have made non-deductible, after-tax Traditional IRA contributions (or if your account includes any after-tax rollover amounts), you will not have to pay taxes on the portion of your distribution that represents after-tax contributions, provided you have filed IRS form 8606 each year you made a non-deductible contribution. Remember, you will owe taxes on any earnings on those contributions.

When should I take my first MRD?
You generally have until April 1 of the year following the calendar year you turn 70½ to take your first MRD. This is known as your required beginning date, or RBD. In subsequent years, the deadline is December 31. If you turned 70 between July 1st of last year and June 30th of this year, you will be turning 70½ this year and will need to take your first MRD for this year.

How should I time my first MRD when it comes to taxes?
If you take your first MRD between January 1 and April 1 of the year after you turn 70½, you still need to take your second MRD by December 31 of the same year. Since IRA and Keogh distributions are taxed as ordinary income, this may push you into a higher tax bracket. Also note that if you take your MRD between January 1 and April 1 of the year after you turn 70½, your December 31 account balance is not reduced by the amount of the MRD taken for the first withdrawal carefully.

Taking Your MRDs Each Year
How should I take my MRDs if I have multiple non-Roth accounts?
If you have more than one non-Roth IRA, you must calculate the MRD for each IRA separately each year. However, you may aggregate your MRD amounts for all of your non-Roth IRAs and withdraw the total from one IRA or a portion from each of your IRAs. If you have qualified plan accounts in addition to your IRAs, you must calculate and satisfy your MRDs for IRAs separately from your qualified plan accounts. If you have more than one qualified retirement plan account, you must calculate and satisfy your MRD requirements separately for each qualified plan account. For example, if you have both a profit-sharing Plan and a self-employed 401(k), you must separately calculate and withdraw an MRD from each plan. Also, MRDs for inherited IRAs must be satisfied separately from your other IRAs.

What are the penalties if I miss a deadline?
The penalty for taking less than your minimum required distribution can be severe. If you withdraw less than the minimum required amount, the IRS may assess a penalty equal to 50% of the amount of the MRD not taken.

Do I have to take my MRD if I am still working?
Yes, with certain exceptions: (1) Roth IRAs are not subject to MRDs while you are living; and, (2) in some
circumstances you may delay MRDs from a Keogh, 401(k), 403(b), or other employer–sponsored retirement plan account until you retire, as discussed above in the section titled “A Few Exceptions”. If you are still working and have other tax–deferred retirement accounts in addition to your current employer’s workplace savings plan, you must satisfy your MRD for those other accounts each year beginning when you reach age 70½.

Can I still contribute to my IRAs while taking MRDs?
You can contribute to a Roth IRA after age 70½ as long as you have compensation and meet the eligibility requirements for modified adjusted gross income. Otherwise, you generally cannot contribute to any other kind of IRA in the year you turn 70½ or any year thereafter.

Beneficiaries and Stretching Tax Advantages of Assets
Why is it so important to consider beneficiaries when taking MRDs?
Retirement accounts generally pass outside the instructions of a will. Your beneficiary designations will
determine who receives your retirement assets upon your death. That’s why it is so important to carefully consider whom you have designated as a beneficiary on your accounts. Also, there are opportunities for beneficiaries to stretch out the tax-deferred growth of IRA assets after the death of the original account owner. With proper planning, many beneficiaries can minimize their required distributions and potentially maximize the advantage of continued tax deferral.

Should I convert to a Roth IRA?
If you have been thinking about converting Traditional IRA assets to a Roth IRA, you should consider making that decision before beginning MRDs because Roth IRAs are not subject to MRDs during the account owner’s lifetime.

 

©2012 FMR LLC. All Rights Reserved.  Used By Permission.

FMR LLC is a Fidelity Investments company. The content provided above is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Investments does not provide advice of any kind. Fidelity Investments is an independent company, unaffiliated with C.H. Dean, Inc. Fidelity Investments has not been involved with the preparation of the content supplied by C.H. Dean, Inc. and does not guarantee or assume any responsibility for its content. 636402.1.0

C.H. Dean Chosen in CNBC’s Top 100 Fee-Only Wealth Managers

Dean Investments has been chosen again by CNBC as one of 2015’s Top 100 Fee-Only Wealth Managers in the country. Rankings were based on management, average account size, client segmentation and growth of assets.

Scores for each measure listed below were weighted according to a proprietary formula to arrive at a final total rank:

  • Assets under management.
  • Having staff with professional designations, such as a CFP or CFA.
  • Working with third-party professionals, such as attorneys or CPAs.
  • Average account size.
  • Growth of assets.
  • Years in business.
  • Number of advisory clients.
  • Providing advice on insurance solutions.

top-100-grab

Learn more

C.H. Dean Employee Named DBJ’s 40 Under 40

C.H. Dean would like to congratulate Cory Miller for being named one of the Dayton Business Journal’s 40 under 40 for the class of 2014! Cory has been extremely involved with the Dayton & Beavercreek community.

Cory currently sits on the Board of Directors for the Beavercreek chamber of commerce as well as president of the Beavercreek Young Professionals, a group that was created by the Chamber of commerce two years ago. Cory is also involved with Dayton History’s Bell board which provides direction and execution on two major fundraising events each year.

C.H. Dean is extremely excited for Cory’s accomplishments as well as his future endeavors.

 

Cory Miller - 40 Under 40 WInner

Morningstar Highlights Dean Small Cap Value Mutual Fund

CHDEAN-Post-Morningstar_a

“Smooth Transitions”, by Rob Wherry

Undiscovered Managers section of Morningstar Magazine April/May 2014

In the April/May issue of Morningstar magazine, Rob Wherry wrote about C.H. Dean in the Undiscovered Managers section of the magazine.   More specifically, the article highlights the “smooth transition” of the Dean Small Cap Value Fund (DASCX) to a new investment team in 2008.  Wherry describes how Steve Miller, President of C.H. Dean, had a vision several years ago to find an institutional-quality team who could revive the fund – “new management that would not only commit to the fund but to the firm, too.”

In March 2008, Dean Capital Management (DCM) was formally created as the investment management affiliate of C.H. Dean.  DCM’s experienced team was lifted-out of a large mutual fund firm in Kansas City.  DCM provides investment management services for Dean’s mutual fund shareholders as well as their SMA clients.   At C.H. Dean we have been quite satisfied with the high-caliber investment results generated by DCM over the past few years.  It is truly gratifying to have our turn-around story recognized by Morningstar, the leading provider of independent mutual fund analysis and research.

Near the end of the article, Wherry summarizes by stating “It’s been five-plus years since Miller made the decision to bring on new management.  There are signs his decision has paid off.”   We agree.

See link for the full article…

Smooth Transitions Morningstar Article

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-888-899-8343. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

C.H Dean Employee Wins Young Professional of the Year

C.H. Dean is pleased to announce that Cory Miller has been selected as the 2013 Young Professional of the year.  The award is being presented by the Beavercreek Chamber of Commerce and is awarded to an individual between the ages of 21 and 40 who has enhanced opportunities for Young Professionals or Young Entrepreneurs within the Beavercreek Community, as well as positively impacted the Beavercreek Business Community.

Over the past year, Cory has taken an active role within the Greene County community, specifically Beavercreek.  During 2013 he served as the President of the Beavercreek Young Professionals (a networking group formed in January of 2013), helped solidify a partnership between the Beavercreek Young Professionals & Franklin University that offers a 20% discount to all of its members for higher education classes, and created The Young Professional’s Cup (a newly formed annual fundraiser that integrates the various Greater Dayton area’s Young Professional groups in an effort to raise money for a local charity).  In addition, Cory was recently elected to serve on the Beavercreek Chamber of Commerce’s Board of Directors.

Cory is currently C.H. Dean’s Corporate Relations Manager.  He helps create and maintain client relationships along with C.H. Dean’s corporate relationships within the community.

Dean Small Cap Value Fund (DASCX) Exceeds $100 Million

Beavercreek, OH – July 2013

Dean Investment Associates (DIA) is pleased to announce that the Dean Small Cap Value Fund (DASCX) has exceeded $100 million in assets under management as of July 10th, 2013. The open-end mutual fund was launched in 1997.  The current sub-advisor, Dean Capital Management (DCM) in Overland Park, Kansas, took over management of the fund in June 2008. 

“Surpassing the $100 million mark is an exciting milestone,” said Steve Miller, President of C.H. Dean, parent company of Dean Investment Associates. “Managed by Steve Roth for the past five years, the Fund has become a popular option among fee-based advisors throughout the country.”

The Fund employs a traditional value approach, focusing on high-quality companies whose stocks are undervalued for transitory reasons. Quality attributes of the companies we analyze include:  strong market position, high returns on capital, solid balance sheets and good free cash flow generation.  When seeking value, DCM analyzes multiple valuation measures, with an emphasis on the company’s normalized earning power over a full business cycle. 

“The success of the Dean Small Cap Value Fund reflects our patient and consistent application of a disciplined value approach,” said DCM Founding Member and Portfolio Manager Steve Roth. “We are pleased with the Fund’s performance over the past five years, and are optimistic about its future.”

For more information about the Fund, please visit www.deanmutualfunds.com. To request more information about Dean Capital Management, please contact Patrick Krumm at 913-944-4452 or pkrumm@deancapmgmt.com.

About Dean Capital Management (sub-advisor)
Dean Capital Management LLC (“DCM”) is an employee-owned registered investment advisor founded in March 2008.  Located in Overland Park, Kansas, DCM is a long-only, fundamental U.S. value equity manager.  DCM manages portfolios across the capitalization spectrum for advisors, financial intermediaries and institutional clients. 

DCM is majority-owned by the founding principals, who also comprise the investment team.  Additionally, all investment professionals maintain significant personal investments in DCM managed products, further aligning the investment team with our clients. 

About Dean Investment Associates (Fund Advisor)
Dean Investment Associates, LLC, 3500 Pentagon Blvd., Suite 200, Beavercreek, Ohio 45431 serves as investment advisor to the Dean Funds. Dean is a registered investment advisor and the money management arm of C.H. Dean, LLC, a privately held investment management and financial services firm. Dean is a value manager with a strong commitment to the principles of value investing.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a copy of the Fund’s prospectus by calling 1(888)899-8343.

Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

Small-Cap investing involves greater risk not associated with investing in more established companies, such as greater price volatility, business risk, less liquidity and increased competitive threat. 

Distributed by Unified Financial Securities, Inc., 2960 N. Meridian Street, Indianapolis, IN  46208. Member, FINRA.