On January 18, 2018, the IRS updated their Frequently Asked Questions page to come into line with the new Tax Cuts and Jobs Act.
My understanding is that being the custodian of your own IRA assets is illegal. Also, we believe that investing your IRA in gold is not a good idea even if you have a third party custodian.
The Tax Cuts and Jobs Act came out of conference, which means that the House and Senate bills have been reconciled into one piece of legislation.
One unsettled issue is the fate of Alternative Minimum Tax (AMT).
It is an inconvenience during the holiday season to say the least, but Roth conversions are worth the effort.
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.
If you budget well according to your values, a one-pocket theory of money enriches your life, prioritizing your financial dreams above your impulses.
While most investment advisors do one total conversion or partial conversion here or there, we have a dedicated Roth segregation strategy, which adds real value to our clients accounts.
Here are 8 reasons you’d want to lower your AGI and 8 methods to lower your AGI.
Like how diner coffee gets more bitter as the waitress tops off your cup with more coffee from the pot, so too the growth on your nondeductible assets increases your tax owed by decreasing the percent post-tax assets in your cup.
Sometimes the change can be in a direction you did not expect.
Yikes! This is a costly mistake.
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.
Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.
When a spouse inherits retirement account assets, they have the right to do what is called a “Spousal Rollover” or “Spousal Transfer.” It is almost always the right option.
Some people don’t stop at distributing just the required minimum. They think, “Well, while I’m at it, I may as well pull out a little bit more so we can fully cover the kitchen remodel…”
Taking the smallest distribution each year will ensure the beneficiary achieves the maximum tax-free growth of tax-free income.
Many feel helpless to direct their own success, but nothing could be further from the truth.
A Roth recharacterization is a true undo; it is as though you never converted those assets in the eyes of the IRS. This includes recalculating your RMD had you not converted the assets.
There is an obscure tax rule that allows a one-time Traditional IRA-to-HSA conversion called a Qualified HSA Funding Distribution (QHFD).
Courtney Fraser Regan is a Wealth Manager and Investment Committee member at Marotta Wealth Management. She specializes in retirement accounts, required minimum distributions, and Roth conversions. Courtney holds a bachelor of science in Applied Economic Management with a concentration in … Read More
Most people are unaware that giving a gift can be a taxable event because they themselves have not yet experienced the tax.
There are multiple ways we help our clients reduce or manage their taxes.
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.
Retirement planning should begin the moment you receive your first paycheck.
How do you handle unexpected income that happens late in the year?
The backdoor Roth strategy involves contributing after-tax funds to a traditional IRA.
Annual required minimum distributions must be satisfied before any additional amounts are converted to a Roth IRA.
I’m on the borderline for being able to contribute to a Roth IRA. How do I determine how much I can contribute?
Regardless of the reason, if you have put too much money in your Roth IRA, the solution is the same.
Even over the income threshold, you may still be able to add funds to your Roth IRA with what is called a backdoor Roth.
These premium surcharges are typically unavoidable except for some planning a Roth Conversion.
Which account you should fund depends on your circumstances, but here are some general guidelines you can follow to make your decision.
Most tax professionals don’t think of such tax planning opportunities, because they have to focus on complying with tax accounting regulations.
Sometimes, there isn’t enough to do it all. Even then, fund your Roth.
Good financial planners can be worth their weight in gold in helping clients build a tax-efficient portfolio.
This is why we call ourselves comprehensive wealth managers.
The short answer is, “No.”
Roth accounts have several advantages over traditional retirement accounts.
Matheson Russell was a Financial Analyst at Marotta Wealth Management, aiding the firm in their financial paperwork and analysis. He began work with the firm in 2011 as an intern and then independent contractor for Marotta Wealth Management. At the … Read More
A complete guide to using Roth IRAs to build lasting wealth.
A backdoor Roth IRA contribution requires some extra steps but allows high-income earners equal access to the tax-free benefits of a Roth IRA.
A dollar saved on your taxes is better than a dollar earned which causes you to pay more tax.
A dollar saved on taxes is worth more than a dollar earned. If you earn another dollar, they will just tax you again.
Securing your retirement financially is too important to leave the process up to chance and guessing.
Do any of these ideas suggest any incentive for the highly productive to continue producing?
Follow-up information for 2013 AAII presentation “Dynamic Portfolio Construction in the Context of Comprehensive Wealth Management.”
Obama would have you believe that $2,200 is a fiscal cliff, but $119,878 is just paying their fair share.