Just like how the principal of Roth IRAs can be withdrawn tax-free & penalty-free, the same can be done with Backdoor Roth IRAs & Mega Backdoor Roth 401ks if certain rules are followed.
AMT, or Alternative Minimum Tax, is a secondary federal tax system parallel to the regular IRS tax system. Its purpose is to ensure taxpayers who receive too many deductions & tax breaks still pay a minimum amount of tax to the IRS.
Social Security benefits may be taxable depending on your income level in retirement, and if you decide to take SS early before your full retirement age, you may receive a reduction in benefits if you are still working.
This article discusses tax optimization techniques including asset location, potential adjustments for significant capital losses from tax loss harvesting and tax considerations for alternative investments.
The sale of employer equity can result in double taxation if one is not careful with making the necessary cost basis adjustments.
Backdoor Roth strategies which allow high-income earners to still contribute to a Roth IRA and potentially super-contribute to their Roth 401k.
An advanced tax strategy that enhances the potential for capital losses generated by direct indexing by adding one or more short positions.
Alexa defines Environmental, Sustainable, and Governance (ESG) investing, and summarizes how to navigate the growing number of ESG funds available.
The new I Bond semi-annual inflation rate will be 1.69%. This article will explore how we calculate that and information on those considering whether they should buy in now, or sell old I Bonds.
I Bonds are inflation-protected bonds offered directly by the U.S. Treasury. Although they generally won’t return as much as stocks, they are great to maintain purchasing power.
Tax-loss harvesting can be useful in an array of situations, but understanding when to best utilize this strategy is key. Tax-loss harvesting is the practice of selling an investment for a loss.
The first component of this approach, comprising the majority of investment dollars, is the purchase of one or more certificates of deposit. There are banks offering CDs insured by the Federal Deposit Insurance Corporation with rates of more than 2% for a 10-year term.