Income too high for a Roth IRA? Think again.
Strategies to help high earners use a Roth IRA to diversify retirement accounts.
Strategies to help high earners use a Roth IRA to diversify retirement accounts.
With tax reform proposals from the White House and the new Congress likely to spark debate, any potential tax code changes will face close scrutiny. Today, tax-efficient planning strategies take on heightened importance. When planning in 2015, consider these five strategies that may help investors mitigate their tax bills. 1. Invest in municipal bonds to
For 401(k) participants with a mix of pretax and after-tax funds in their retirement plan, planning may be easier following a recent announcement from the Internal Revenue Service. The IRS issued a notice in September that provides clarification on how to distribute these funds. Participants will be able to direct pre-tax funds to a traditional
It’s not too late for taxpayers to “undo” a Roth IRA conversion. The deadline to recharacterize — or reverse — the conversion is October 15. It’s an opportune time for advisors to review Roth assets with investors. In general, individuals have until October 15 of the following year to recharacterize a Roth IRA conversion and
Individual retirement accounts (IRAs) continue to comprise the largest segment of assets in the retirement industry. Most of the growth is driven by rollovers, creating opportunities for financial advisors working with clients who are deciding what to do with their 401(k) assets. Here are five ideas that advisors may use to try to grow their
With their growth rate expected to nearly double that of 401(k) assets in the next five years, individual retirement accounts (IRAs) continue to be a leading segment in the retirement industry. Here are some highlights of the growing IRA market: 1. The traditional IRA represents the largest share of U.S. retirement assets. In a 2014
The use of the Roth IRA has increased dramatically since its introduction in 1997, following passage of the Taxpayer Relief Act. Assets in Roth IRAs more than quadrupled in the past decade to $420 billion in 2012, held by nearly 20 million households, according to the Investment Company Institute. Most recently, the IRS reported a
With the April 15 deadline approaching for making a 2013 tax year contribution to an individual retirement account, it is a good time to talk about tax strategy. And with varying types of IRAs available, clients of all income levels may benefit. Higher-income clients who may not be eligible to contribute to a Traditional or
Limiting or reducing deductions were among the highlights of the most recent tax reform proposal on Capitol Hill, catapulting tax-preference items to the forefront of the debate once again. Although unlikely to proceed as a formal piece of legislation, the Tax Reform Act of 2014 — released last week by House Ways and Means Committee
With the introduction of higher tax rates for some taxpayers in 2013 and ongoing tax-reform debate in Washington, it is essential for any comprehensive financial plan to include tax smart planning strategies. Specific income thresholds will trigger the new 3.8% Medicare surtax, income phase-out of itemized deductions, or the highest marginal tax rate. These five