Roth conversions can decrease your taxable income and increase your tax savings over the long haul.
Required minimum distributions are taxed as taxable income, the same as other types of traditional IRA withdrawals and Roth conversions.
Taxes related to traditional IRA withdrawals only happen once. Meanwhile, the funds in your taxable account are subjected to taxation each year.
While most states do not have their own estate or inheritance taxes, some states do and often their exemption is lower than the federal one.
I have difficultly imagining a likely outcome where I would regret a Roth conversion.
How do our current tax brackets compare to historical ones? Are our taxes higher than the past? When was the most expensive time period for the U.S. income tax?
You may be surprised by the amount of subsidies you can receive.
The annual drag of taxable account taxation may seem like a small amount, but the effect over long periods of time such as 30 years is significant.
If you are already shopping for health insurance for 2022, consider getting an on-exchange health insurance plan. You may be surprised at how much subsidies you can receive.
If you are currently shopping for health insurance for 2022, consider getting an on-exchange health insurance plan. You may be surprised at how much subsidies you can receive.
In this talk, David demonstrates how Roth conversions can be extremely valuable even if a client is always in the same tax bracket.
Which of these three methodologies you prefer depends on your reason for giving.
If you have a tax credit eligible charity where you like their work better than the state government, then consider redirecting your state tax to fund the charity instead.
If you have an accepting employer plan, you could consider rolling the pre-tax funds into your 401(k) this year while converting your nondeductible basis cleanly to a Roth IRA.
Market returns are out of your control. These thirteen actions are in your control.
If your employer offers a 457 plan, consider taking advantage of the ability to shelter more money each year from taxes in a Roth account.
On Tuesday, March 12, 2019, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss how to do your own tax review.
Punishing people for inflation is neither fair nor good economic policy.
On Tuesday, November 13, 2018, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss several tax saving ideas you can do before the year ends.
You can take the RMD out as early as January 1st or as late as December 31st, but when should you?
At our firm, tax planning is our priority. We hope to maximize after-tax net worth over your lifetime, even if it is at the expense of this one year.
However, in 2018, the health insurance rates are extraordinarily high, especially in Charlottesville. Taking one year off from your valuable tax planning strategies to get free or low-cost health insurance might be worth it.
Here are 8 reasons you’d want to lower your AGI and 8 methods to lower your AGI.
Families that consider generational financial planning techniques can reduce the burden of taxes on the family as a whole.
I have learned there are so many more wise plans than just “top of the bracket” conversions.
A dollar saved on taxes is worth more than an extra dollar of income because the extra dollar of income is in itself taxable.
Exact asset location depends on the percentage of a portfolio held in each of the three types of accounts as well as the percentage of the portfolio which is to be allocated to each selected sector. But the boost in after-tax returns is well worth the effort.
When you finish your tax preparation, it is time to begin tax planning.
Using a 1031 exchange to turn investment property into residential property is possible, but it takes careful planning from the outset.
Most people are unaware that giving a gift can be a taxable event because they themselves have not yet experienced the tax.
The IRS does not do a good job of helping people understand capital gains taxes. They provide a worksheet to help you calculate it, but it has so many steps that it’s nearly impossible to figure out what’s going on.
Wash sale rules need to be followed when realizing capital losses for taxes but can be burdensome to track and monitor.
Contrary to the normal way of things, this time what Uncle Sam gives with the IRS, he takes away with the SSA.
1031 exchanges can include “boot,” which is an unofficial term for other property received in the exchange.
How do you handle unexpected income that happens late in the year?
In a 1031 exchange, the cost basis of the property you give up is rolled into the new property you receive.
Because 1031 exchanges are a great way to defer paying large amounts of capital gains tax, the IRS tends to be suspicious of them.
It is better to leave stock to a family member in your estate plan than to gift them the stock while you are alive.
Even over the income threshold, you may still be able to add funds to your Roth IRA with what is called a backdoor Roth.
Virginia taxpayers can give generously and offset the cost of those gifts through tax credits and the avoidance of capital gains taxes.
You might think that you can’t qualify, but many well-paid families are eligible.
As with many financial decisions, our gut feelings deceive us on this matter.
Good financial planners can be worth their weight in gold in helping clients build a tax-efficient portfolio.
It is better to do tax planning all throughout the year, but here are 12 things to do (or plan to do in the coming year) before April 15.
My wife and I are 65 years old and I am newly retired. Is there any advantage in doing a Roth conversion this year?
Exchange funds, also know as swap funds, can provide investors with one highly appreciated security a way to trade it for an equivalently valued but more diversified portfolio.
A reader asks, “My wife has a $250K SEP IRA earning 1.5% interest. Can we use any of the funds for real-estate investments?”
Despite their complexity, these exchanges have the potential to save vast amounts of money.
Having sufficient assets in a taxable account can allow for tax planning.
There are at least four different capital gains tax rates. Here’s how to minimize yours.