When it comes to investing for retirement, the author of today’s article argues that “While there has been an explosion in passive investing in recent years, investing specifically in your area of expertise can give you a leg up.” How? By using a self-directed account that allows you to make investments in alternative asset classes associated with that area of expertise. However, the author cautions, while “The scope of what you can do with a self-directed account is broad…the IRS does have rules around what you cannot do with an IRA or 401(k) plan.” For more, CLICK HERE.
When it comes to withholding taxes in retirement, the author of today’s article advises that you want to withhold just the right amount: over-withhold and you miss out on earned interest; under-withhold and you risk getting hit with a penalty tax by the IRS. However, despite the importance of getting your withholding as close as possible to your actual tax liability, the author notes that “Many upcoming retirees aren’t quite sure how taxes in retirement are calculated.” As such, they outline some sample calculations showing how to calculate your tax withholding in retirement. CLICK HERE.
December 31st is the deadline for those over age 70½ with tax-deferred retirement accounts to take their required minimum distributions (RMDs) and, after outlining the rules relating to RMDs (such as that hefty 50% penalty the IRS imposes on those who fail to take their distributions on time), today’s article provides some tips for taking RMDs. When – if ever – is it beneficial to use an extension, if you are eligible for one? How can individuals fortunate enough to not need this income continue to “cling to the growth”? CLICK HERE to read more.
While ’tis the season for spending, the author of today’s article notes that “this is also the time of year when a few simple moves could also save…some coin”, and he proceeds to outline three such moves to consider before January 1st. Move #1? Think about tax-loss harvesting (including how you can take advantage of the IRS’ “wash rule” to get a tax break for losing positions in your portfolio that you still want to hold onto). To read more about tax-loss harvesting – as well as for the other two last-minute money saving moves the author identifies – CLICK HERE.
While many investors will not begin to think about taxes for several more months, today’s article argues that “anytime is a good time for tax planning” and that this time in particular – the fourth quarter of the year – is a particularly good time for this, stating that “planning before the end of the year increases the number of opportunities you have to potentially lower you bill.” The authors outline a number of steps investors can take in the fourth quarter to prepare their returns and potentially reduce their tax liability. To see what these steps are – including why some unemotional stock selling may be in order and the savings opportunity presented by bunching expenses – CLICK HERE.
“They don’t have a clue.” This is what one certified financial planner and investment advisor declares in today’s article about people planning for taxes in retirement. In light of the fact that hefty tax bills in retirement can dramatically increase the odds of retirees – even those who saved prudently – running out of money, the author goes on to outline steps retirees can take to reduce the amount they shell out to the IRS. From keeping tabs on your risk of crossing into a higher tax bracket to being strategic about retirement account withdrawals to “Thinking Roth”, CLICK HERE to see all the ways the author recommends to keep the taxman from putting a damper on your golden years.
Something in the financial world is surging. Unfortunately that something is electronic tax scams. Today’s article highlights a recent IRS consumer alert stating that “email and texting scams designed to trick U.S. taxpayers into providing personal data have surged 400% so far this year….” In fact, “the 1,389 incidents reported to date represent more than half the…total for all of last year.” What scams is the IRS urging taxpayers to be on guard against and what steps is it taking to combat this onslaught? CLICK HERE to read more.
The IRS may not generally be viewed as a helping hand but today’s article points out that “the IRS offers a host of valuable tax breaks for sole proprietors and the self-employed that are intended to help their businesses succeed”, outlining 7 key tax breaks available to this group and what can and cannot be deducted. Want to know what one of the tax breaks most commonly overlooked by the self-employed is? And does your “home office” meet the IRS’ definition of a home office? To read more, CLICK HERE.
Would you like to make your chances of being on the receiving end of an IRS audit as small as possible? We thought so! Today’s article outlines 7 suggestions that may help to reduce your risk of being audited (or, at least, have little to fear if you do get audited). To read more on why you might be wise to say goodbye to paper returns, and the possible risk you take by filing an amended tax return, CLICK HERE.