Optimal Asset Location
Deep dive into Asset Location Optimization and Tax-Efficient Fund Placement. This is Asset Allocation in Multiple Accounts!
Category Archives: Taxes
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How to Optimize Inheritance to Your Children
Optimize Inheritance to Kids Inheritance. A goal for some is to leave behind money for their kids. What is the most tax-efficient way to leave money to your kids? If your goal is your kid’s inheritance, consider which accounts you […]
Who Pays the Taxes on Your IRA?
IRA Legacy Planning Let’s look at IRA Legacy Planning. IRAs are tax timebombs, and someone will pay the taxes. Who? You, Your Spouse, or Your Kids? Do you and your spouse want to pay the taxes or leave them for […]
SLATs — I want an Estate Tax Problem!
SLATs If you have succeeded in gathering and protecting assets, you may have a Federal Estate Tax problem. Consider a SLAT. How about that for a new financial goal: I want an estate tax problem! Worried about Estate Taxes? […]
Tax Planning Window in Retirement
Tax Planning Window to Save in Lifetime Taxes What is the optimal time to do tax management for retirement? The tax planning window! Not infrequently, that tax strategy is a yearly series of partial Roth conversions. These pre-pay future taxes […]
MAGI Calculation: IRMAA and ACA Tax Credits
Calculate MAGI for IRMAA and ACA Tax Credits The MAGI calculation for IRMAA and ACA Tax Credits is vital but usually glossed over. When faced with a difficult calculation, it is easy to wave one’s hand. MAGI is used twice […]
Marginal vs Effective – Tax Rate Arbitrage
Tax Rate Arbitrage and Roth Planning Tax rate arbitrage is an important concept in retirement planning. You must understand tax rate arbitrage to buy the government out of your retirement. When should you harvest or accelerate income, and when should […]
Non-Deductible IRAs – A Comprehensive Guide
Non-Deductible IRA After-tax contributions to a traditional IRA are a common problem. These results in basis in your IRA. That is, you have money you have already paid taxes on in a usually pre-tax account where you still owe taxes! […]
Long-Term Capital Gains Stack on Top of Ordinary Income Tax
Taxation of Long-term Capital Gains A separate (and some would say mystical) taxation system exists for long-term capital gains and qualified dividends. Let’s discuss the Long-Term Capital Gains Tax and how the standard deduction applies to capital gains. Ordinary income […]