Some Advice on Tax Planning
I don't normally give advice on personal finances, but in light of the fiscal situation we are facing, I will pass along one tidbit. Consider converting some of your retirement savings into a Roth IRA. Over the past few years, I have converted all that I can, which is about half of my retirement savings.
To make the best of a Roth conversion, you need liquid assets outside of retirement accounts to pay the resulting tax liability. But if you can do this, you will shelter more of your savings from capital taxation, and you will avoid required minimum distributions when you turn 70 1/2, which means tax-free accumulation for a longer period of time.
To read more about this option, click here.
To make the best of a Roth conversion, you need liquid assets outside of retirement accounts to pay the resulting tax liability. But if you can do this, you will shelter more of your savings from capital taxation, and you will avoid required minimum distributions when you turn 70 1/2, which means tax-free accumulation for a longer period of time.
To read more about this option, click here.
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