Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Converting a portion or full balance of an IRA into a Roth can come at a steep price for clients, according to Money. A conversion can include both state and higher federal taxes on Social Security benefits, depending on a client's circumstances. -- Money
Taxes are one of life’s sure things, but clients can still make changes after the filing deadline. Here’s how.
Debt cancellation, a home sale, gambling winnings and insufficient tax withholdings all can drive up a tax bill, according to USA Today. However, clients who fail to foresee these tax liabilities have options to remedy the situation. Here's how avoid these from becoming surprises. -- USA Today
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How a couple wrote off cat food and other breaks that boosted refunds. Plus, how charity counts toward an IRA withdrawal.
February 14 -
There are ways around having to pay as much as a 50% penalty. Plus, inheriting Roth IRAs and designing more efficient retirement portfolios.
January 31 -
Moving investments into these accounts may optimize returns and boost savings. Plus, know your IRAs and the impact of Trump's proposals on income brackets.
January 25 -
Why it's a good time to invest even small amounts into 401(k) and Roth IRA accounts. Plus, avoiding the capital gains hit.
January 17
If your client is baffled by RMDS, they could be risking a big tax penalty. So it may be worth it for them to take a moment to review the basic rules, according to Kiplinger. What’s scary is that the stakes are high: If the client takes an IRA distribution for a calendar year that’s less than what the IRS requires, they’ll be hit with a tax penalty of 50% of the shortfall. Now, the IRS may waive the penalty, for a “reasonable cause." -- Kiplinger
Thanks to inflation, more taxpayers are having to pay the AMT, according to MarketWatch. While the “regular” tax brackets, exemptions and standard deductions were adjusted annually for inflation, the AMT brackets and exemptions weren't until recently. So taxpayers whose income increased entered the dreaded AMT zone. -- MarketWatch
