If stock market volatility has drained value from your traditional IRA, this might be a good time to convert the account into a Roth IRA to take advantage of tax-free asset growth. The move may be especially appealing for retirees who have delayed their Social Security benefits and are younger than 70½. To read the full article in CNBC, click: This Failing Market Offers an Opportunity to Cut Your Taxes in Retirement.
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Many of the biggest beneficiaries of President Donald Trump’s tax overhaul have not even been born yet. The new law doubles the amount that can be passed to heirs without worrying about estate and gift taxes, to about $22 million for a married couple. But the thresholds are in place only until 2025, and the ultra-rich are turning to a key tool—the dynasty trust—to secure the financial futures of their grandchildren, great-grandchildren, and beyond. To read the full article in FinancialPlanning, click: The Ultra Rich are Turning to This Key Tax-Cutting Tool.
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Clients can use tax-free, non-alternative minimum tax municipal bonds to create a source of tax-free income, an advisor on CNBC writes. While long-term investors will be better off building a portfolio of equities and bonds than having a 100% bond portfolio, muni bonds are a good alternative to annuities and other fixed-income vehicles, according to the expert. Clients who invest in annuities will incur taxes and other costs, but they “can invest the same amount into a diversified municipal bond portfolio and pay no taxes and receive tax-free income until the bonds are called or mature.” To read the full…
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Strategies to Generate Tax-Free Income From making contributions to Roth individual retirement accounts to renting out their homes for 14 days or less, Sean Williams explores seven tactics that clients can use to generate tax-free income. To read the full article in the The Motley Fool, click: 7 Ways You Can Earn Tax-Free Income.