Income Tax Planning in Retirement
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Year-End Tax Planning
Year-end tax planning is special this year. The new tax law, the market downturn, and other factors provide some unique opportunities and traps. With the right moves in the next few months you can substantially reduce taxes this year and in coming years. The wrong moves, or failure to act, can cost you. The math […]
Beating The Stealth Taxes
There are hidden income taxes. I call them stealth taxes. More Americans fall prey to these taxes every year, especially older or retired Americans. There are three main stealth taxes: the alternative minimum tax (AMT), the Pease tax (the itemized deduction reduction), and the PEP (personal exemption phaseout). These stealth taxes are in addition to […]
Tax Breaks from Retirement Activities
More and more retirees stay active. Some work or start businesses. Some have hobbies. Technology and other changes in the economy make it possible for more and more seniors to pursue avocations. But too many seniors overlook big tax breaks from these activities. Over the years I’ve driven through the horse country of Virginia many […]
How to Boost Insurance Tax Benefits
Insurance products can be great tax shelters. Annuities and cash value life insurance have tax breaks sanctioned by Congress. But a price of the benefits is that there are a number of tax traps. It is easy to fall into one of these traps, and the result can be expensive. Even worse, an entire estate […]
Health Care Tax Strategies
Health care or long-term care can eat up a big part of a retiree’s budget – or the budget of a retiree’s children. Fortunately, the tax law can help pay for a big part of that burden. Deductions for medical expenses seemed to disappear when the rules were changed in 1986. Now, you can deduct […]
Beat Taxes On Social Security Benefits
The 90% marginal tax bracket is alive and well. Most people believe that such high marginal tax rates ended with the 1981 and 1986 tax cuts. For most taxpayers, they did. But those high marginal tax rates exist today and are reserved for retirees. Many of you who recently completed your federal income tax returns […]
Should I Empty My IRA Early?
It is not always a good idea to keep money in an IRA as long as possible. In most cases, it makes sense to let income and gains compound tax deferred for many years. But that can change as you get older. You might benefit by taking more money out of an IRA than you […]
Fresh Start For Your IRAs
The IRS recently created a tremendous opportunity to improve your financial and estate planning. In a surprise to everyone, the IRS in early January issued new rules for taking required minimum distributions (RMDs) from IRAs and other qualified retirement plans after age 70 1/2. The previous rules, described in detail in my Retirement Tax Guide, […]
