One retirement income strategy that will be virtually unscathed by President Biden’s proposed tax increase is longevity insurance, more commonly known as fixed-income annuities.
Savvy business owners planning to sell their business can reduce or eliminate income tax liability from capital gains by using a long-standing IRS-blessed strategy called a charitable remainder trust, or CRT.
If you didn’t take distributions from your retirement plan and IRA accounts in 2020, you may be surprised by your 2021 RMD. Adviser Robert Klein explains how changes to the rules in 2020 will impact you in 2021 and beyond.
Six stealth taxes can increase your income tax liability and reduce your lifetime after-tax retirement income. Planning for each of them should begin long before and continue throughout retirement.
This article was originally published in, and has been reprinted with permission from, Retirement Daily. Distributions from a traditional 401(k) plan are generally taxable as ordinary income at your regular income tax rates. This includes pre-tax contributions plus earnings. If your traditional 401(k) plan is rolled over to a traditional IRA, the same rule applies…
A Roth conversion often makes sense but there are times when reduced income tax savings can offset the potential long-term benefits of large conversion amounts..
There are two strategies you can use to avoid the 10% premature distribution penalty: Coronavirus-Related Distributions and 72(t).
If you are the beneficiary of a retirement or IRA account that you inherited after 2019, you need to familiarize yourself with the new SECURE Act rules to determine the applicable time frame for taking distributions in order to avoid potential sizable penalties.
Although you can rollover, or return, your 2020 IRA and other retirement plan February 1st to May 15th distributions as a result of the 2020 waiver of RMDs, there’s another strategy that you can use to reduce future years’ income tax liability and optimize lifetime after-tax distributions for you and your heirs.
Use the CARES Act waiver of 2020 required minimum distributions as an opportunity to optimize your retirement income plan.
As a result of a series of three events, there’s an unprecedented opportunity to do a sizable Roth IRA conversion this year.
The stock market decline of almost 30% over the last month in response to the spreading Coronavirus, if sustained, could trigger legislation for retirement plan relief. This could potentially include suspension of required minimum distributions and changes to the SECURE Act that went into effect January 1st.
One underutilized strategy for optimizing the longevity of assets when planning for retirement is a staged, or multi-year, Roth IRA conversion plan. There are seven reasons to start this type of plan today.
A surviving spouse who has the same, or even less, income will often be subject to higher federal, and potentially, state, income tax liability.
Lower tax rates under the new income tax law, combined with the likelihood of higher tax rates in the future, support a Roth solo 401(k) contribution strategy.
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