Backdoor Roth Contributions are a commonly used planning technique to help high-income earners contribute to a Roth IRA. While the strategy is commonplace, the logistics are often misunderstood. This can lead to misconceptions and potential errors on tax return filings. In this article, we will …
Tax Planning
Planning for the New Year
With 2021 just around the corner, you may be thinking about New Year’s resolutions and setting goals for the year ahead. The IRS recently released the 2021 planning limits which we will incorporate into your plan. Additionally, with a new administration taking office, we wanted to highlight some of …
Tax Planning During Volatile Markets
Market volatility occurs when we see meaningful price swings in either an up or down market. This can provide for unique tax planning opportunities. Below is a summary of some potential strategies to consider as we approach year end. Portfolio Rebalancing How it Works: Rebalancing is key to …
Save More For Retirement With Your Health Savings Account
As you plan for retirement, consider using one of the best options for building tax-advantaged savings – a Health Savings Account (HSA). An HSA is a medical savings account available to anyone enrolled in an HSA compatible high-deductible health plan (HDHP). For 2020 and 2021, the IRS defines a high …
Tax Planning Strategies During Market Declines
Market volatility can provide plenty of opportunities for portfolio rebalancing and this is especially true when markets enter “correction mode”. Market corrections are associated with price declines of 20% or more. As many of you know, we are actively monitoring investment portfolios for …
How To Prepare For Tax Season
Many people put off dealing with their tax information because it can feel overwhelming. Starting early, being organized, and staying in-touch with your tax professional throughout the year are easy ways to avoid the last-minute headache of tax preparation. Here are some tips and information to help …
Five Tax Planning Opportunities
Reducing your tax bill is an important financial planning goal. Here are five evergreen strategies for shrinking the amount of taxes you owe. 1. Max out contributions to your retirement accounts Contributions to workplace retirement savings plans and IRAs reduce your current taxable income. In …
Make the Most of the 2018 Tax Law Changes
A year ago, Congress enacted significant changes to the U.S. tax code, which took effect on Jan. 1, 2018. One of the biggest changes is the across-the-board reduction in income tax rates and expansion of income brackets. That’s good news for anyone who pays taxes. But many of the other changes could …
Gifting to avoid taxes? You might not need to.
Many people know that giving away assets before your death can protect your heirs from paying estate taxes, which can be as high as 40%. But in some cases, gifting can actually lead to an unintended increase in taxes… particularly income tax! Due to recent changes in the federal estate tax law, it …
Social Security Strategies
Social Security benefits are an important factor in retirement planning. Unfortunately, many Americans start collecting their payments too early, potentially costing them tens of thousands of dollars over time. For most people, it pays to hold off. Let’s take a look at some options: STRATEGY 1: …
