Welcome to your daily briefing on finance developments in Texas. Today we're covering 5 key stories including updates on texas finance headlines, background & context. Let's dive in.
2 stories
Texas First Bank offers Small Business Administration loans with lower down payments and competitive terms designed to help businesses grow.
Finance professionals advising TX small business clients now have another local lending option to consider for expansion capital with favorable SBA-backed terms.
The Texas Department of Banking's Corporate Division issues orders and agency decisions for corporate filings including mergers, activities, conversions, and related applications, with a search tool available for locating corporate activities.
Finance professionals advising Texas banks and trust companies need timely access to regulatory precedents and approval patterns for corporate transactions.
Reach professionals in this market
3 stories
Rebalancing taxable accounts realizes capital gains; the tax cost can erode the benefit of holding the target allocation. Tax-advantaged accounts (IRA, 401(k), Roth) have no such cost. A common improvement: hold higher-rebalance assets in tax-advantaged accounts and let taxable accounts drift longer between rebalances.
Mechanical rebalancing without account-type awareness can cost 0.3-0.7% annually in unnecessary tax drag. Coordinated rebalancing across account types is a standard practice that surprisingly few advisors implement.
The mega-backdoor Roth strategy requires a 401(k) plan that allows after-tax contributions AND in-service distributions or in-plan Roth conversions. Without both features, the strategy is unavailable regardless of income. Many plans permit one but not the other.
Highly compensated participants who plan around mega-backdoor savings need to confirm both plan features at the start of the year, not when contributions are due. The planning window is the calendar year.
A grantor trust is taxed to the grantor on income; the trust itself is invisible for income-tax purposes. A non-grantor trust pays its own tax at compressed brackets that hit top rate at relatively low income (~$15K). The choice between structures depends on the grantor's tax rate, the trust's expected income, and distribution patterns.
Default drafting often produces grantor trusts when non-grantor would have been preferable, or vice versa. Restructuring after the fact requires complex amendments and may have unintended tax consequences.
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