Distribution and Taxes - Financial Advisor Source

The HSA ‘Deathbed Drawdown’: Making Tax-Efficient Distributions Of Large Balances (When There Isn’t Much Time)

Nerd's Eye View

FEBRUARY 15, 2023

Health Savings Accounts (HSAs) feature useful tax advantages that make them a popular savings vehicle. One possible outcome of ‘superfunding’ an HSA, however, is that the account owner may not actually use up all of their HSA funds over their lifetime, which can have significant tax consequences. Read More.

Distribution

Distribution Taxes Medical Accounting

Why Pre-Tax Retirement Contributions Are Better Than Roth In Peak Earning Years (Even If Tax Rates Increase)

Nerd's Eye View

SEPTEMBER 25, 2024

Over the last 60 years, the top Federal marginal tax bracket has steadily decreased from over 90% in the 1950s and 60s to 'just' 37% today. While it's true that the top marginal tax rate has decreased dramatically since the mid-20th century, the difference in the actual tax paid by most Americans has been far more modest.

Taxes

Taxes Retirement Tax Planning Accounting

Making Estate Planning More Tax Efficient And Equitable For Beneficiaries By NOT Just Splitting The Assets Evenly

Nerd's Eye View

AUGUST 7, 2024

Although the 'one big pot' mindset might be the simplest approach to estate distribution, it may not be the one that results in the most wealth being passed down or the most equitable distribution of assets between each beneficiary.

Estate Planning

Estate Planning Taxes Assets Planning

Webinars

Avoiding Lease Accounting Pitfalls in 2025: Lessons Learned from Spreadsheet Errors

MORE WEBINARS

Utilizing Swap Powers In Irrevocable Trusts To Add Flexibility And Income Tax Efficiency

Nerd's Eye View

AUGUST 21, 2024

Irrevocable trusts lie at the heart of a variety of estate planning strategies, as gifts to irrevocable trusts can allow for the transfer of assets outside of an owner’s estate for estate tax purposes with more structure than an outright gift. the assets' original owner).

Taxes

Taxes Wealth Advisor Estate Planning Assets

Planning For Adoption: Understanding Different Pathways And Their Costs, Tax Breaks, And Financial Assistance Available

Nerd's Eye View

AUGUST 2, 2023

Which means that financial advisors can play an important role in adoption planning – helping clients strategically plan for the costs involved in the process, including accessing tax credits that can significantly defray these expenses. The costs of adopting a child can vary significantly depending on the method of adoption.

Taxes

Taxes Planning Financial Advisor Strategic Planning

SECURE Act 2.0: Later RMDs, 529-to-Roth Rollovers, And Other Tax Planning Opportunities

Nerd's Eye View

DECEMBER 28, 2022

The Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in December 2019, brought a wide range of changes to the retirement planning landscape, from the death of the ‘stretch’ IRA to raising the age for Required Minimum Distributions (RMDs) to 72. In addition, SECURE 2.0 backdoor Roth conversions).

Tax Planning

Tax Planning Taxes Planning Retirement Planning

SECURE Act 2.0: Later RMDs, 529-to-Roth-Rollovers, And Other Tax Planning Opportunities

Nerd's Eye View

DECEMBER 28, 2022

The Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in December 2019, brought a wide range of changes to the retirement planning landscape, from the death of the ‘stretch’ IRA to raising the age for Required Minimum Distributions (RMDs) to 72. In addition, SECURE 2.0 backdoor Roth conversions).

Tax Planning

Tax Planning Taxes Planning Retirement Planning

“Legacy IRA” Rollover To A Charitable Gift Annuity: Using This New Tax-Advantaged Opportunity To Help Clients Achieve Charitable And Retirement Goals

Nerd's Eye View

AUGUST 23, 2023

However, the caveat with current CGAs has been that they could only be funded with after-tax dollars before the donor’s death, meaning that if an individual only had tax-deferred funds (e.g., Second, they reduce the donor's tax bill in the year the CGA is created by excluding the amount contributed to the CGA from taxable income.

Taxes

Taxes Retirement Clients Estate Planning

Personal finance links: retirement preparedness

Abnormal Returns

FEBRUARY 7, 2024

open.spotify.com) Taxes What happens if you don't file and/or pay your taxes. financialducksinarow.com) Who pays taxes on Social Security benefits? morningstar.com) The upside of a qualified charitable distribution or QCD. (peterlazaroff.com) Morgan Housel on the art of spending money.

Retirement

Retirement Transportation Taxes Distribution

Managing Taxes in Retirement using the Effective Marginal Tax Rate

Advisor Perspectives

NOVEMBER 13, 2023

Research on tax-efficient retirement distribution strategies aims to sequence withdrawals from taxable, tax-deferred, and tax-exempt accounts to maximize after-tax spending.

Taxes

Taxes Retirement Management Distribution

New RMD Rules For Spousal Beneficiaries Of Retirement Accounts With SECURE 2.0’s “Spousal Election” Option

Nerd's Eye View

SEPTEMBER 11, 2024

Among all the different types of retirement account beneficiaries, those who are the surviving spouse of the original account owner receive the most preferential tax treatment when it comes to distributing the account's assets after the owner's death. But the SECURE 2.0

Accounting

Accounting Retirement Distribution Taxes

At the Money: Meb Faber on Tax Aware ETFs

The Big Picture

DECEMBER 4, 2024

Would you like to diversify but also defer paying big capital gains taxes? I’m Barry Ritholtz and on today’s edition of at the money we’re going to discuss how to manage concentrated equity positions with an eye towards diversification and managing big capital gains taxes. None of these solutions are optimal.

Taxes

Taxes Portfolio Accounting Management

Planning for Your First Required Minimum Distribution in Retirement

Carson Wealth

JANUARY 5, 2023

Qualified retirement plans – such as 401(k)s, 403(b)s and IRAs – offer clear tax advantages. Traditional 401(k)s, 403(b)s, and IRAs offer a tax deferral on contributions and growth until distribution. To prevent individuals from taking advantage of the tax-deferred growth in perpetuity, there are certain rules in place.

Distribution

Distribution Retirement Planning Taxes

529-To-Roth IRA Rollovers: Taking Advantage Of The New Option To Move Education Savings To Retirement Savings

Nerd's Eye View

JUNE 26, 2024

And so the conundrum of people with "too much" savings in their 529 plan – either because they overestimated how much they needed to save, or because they chose a different path entirely that didn't involve going to college – has been how to get funds out of the plan without sacrificing a large part of their value to taxes and penalties.

Education

Education Retirement Taxes Distribution

What if Dunning Kruger Explains Everything?

The Big Picture

FEBRUARY 27, 2023

This demographic cohort is simply not a seller due to retirement – the tax expenses would be too great. Estate taxes are why appreciated equity is transferred this way. aka The Hidden World of Failure ) (October 23, 2020) Stock Ownership : Distribution of Household Wealth in the U.S.

Distribution

Distribution Retirement Retirement Planning Taxes

Adviser links: helping clients feel secure

Abnormal Returns

FEBRUARY 19, 2024

thinkadvisor.com) How tax treatment differs across states for 529-to-Roth IRA rollovers. advisorperspectives.com) Fidelity Charitable distributed $11.8 (forbes.com) Why older Americans are at-risk of scams. sciencedaily.com) How the pandemic affected life insurance premia. billion in donor-recommended grants in 2023. riaintel.com)

Clients

Clients Estate Planning Wealth Management Financial Advice

Weekend Reading For Financial Planners (November 16-17, 2024)

Nerd's Eye View

NOVEMBER 15, 2024

Also in industry news this week: NASAA has proposed an amendment to its broker-dealer conduct model rule that would restrict the use of the terms “advisor” and “adviser” for broker-dealers and their registered representatives who are not also investment advisers or investment adviser representatives A recent study suggests that (..)

Financial Planner

Financial Planner Asset Allocation Taxes Tax Planning

The Basics of Required Minimum Distributions With Your Retirement Account

Carson Wealth

JUNE 2, 2023

by Jake Anderson, Paraplanner Retirement accounts like 401(k)s and IRAs allow individuals to save for their future in a tax advantaged manner. IRA and 401(k) contributions are often tax deductible and gains are tax deferred – meaning you may only pay taxes when you withdraw money from your account.

Distribution

Distribution Accounting Retirement Retirement Planning

Effective Implementation Of A Backdoor Roth Strategy: Detailed Nuances, IRS Form 8606 (And When It’s Even Worth Doing)

Nerd's Eye View

NOVEMBER 1, 2023

There are many tax planning strategies that allow financial advisors to demonstrate the ongoing value they provide to clients in exchange for the fees they charge. Advisors also can support the backdoor Roth process by communicating with clients' tax preparers about the strategy and why they are recommending it for their mutual client.

Taxes

Taxes Accounting Clients Retirement Planning

Using A Testamentary Charitable Remainder Unitrust (T-CRUT) To Give Twice To Both Loved Ones And Charitable Organizations

Nerd's Eye View

JANUARY 31, 2024

This shift has led financial advisors to explore new strategies for mitigating the resulting tax-planning challenges. This allows the account to grow on a tax-deferred basis, with income to beneficiaries being taxed when distributions are made.

Financial Advisor

Financial Advisor Estate Planning Nonprofit Financial Planner

Weekend Reading For Financial Planners (Nov 19-20)

Nerd's Eye View

NOVEMBER 18, 2022

A potential compromise during the lame-duck Congressional session could see a boost to the child tax credit and extended tax breaks for businesses. From there, we have several articles on tax planning: How advisors can add value for their clients by managing their exposure to mutual fund capital gains distributions.

Financial Planner

Financial Planner Tax Planning Taxes CFP

Personal finance links: solved problems

Abnormal Returns

MAY 24, 2023

humbledollar.com) Distributions What do required minimum distributions measure? nytimes.com) What can we learn from past Presidents' tax returns? (dariusforoux.com) TA, "We should not feel guilt or anxiety about spending within our means." monevator.com) Does streaming still save money over cable? It’s your life.

Distribution

Distribution Education Financial Planning Retirement

Establishing Solo 401(k) Plans For Self-Employed Workers: Options, Contribution Limits, Deadlines, And More!

Nerd's Eye View

NOVEMBER 23, 2022

Among the several different types of retirement plans that are available to self-employed workers, solo 401(k) plans can offer the most flexibility and the ability to contribute the highest amount of tax-advantaged savings.

Planning

Planning Distribution Assets Retirement Planning

Monday links: narcissistic power-grabbers

Abnormal Returns

DECEMBER 4, 2023

on.ft.com) Beware converted ETFs in their first year, tax distribution-wise. (variety.com) Brad Jacobs, founder of XPO Logistics Inc. is launching a new (public) venture. finance.yahoo.com) Funds Was the ESG movement just another ZIRP phenomenon? etf.com) Why Q4 is a big quarter for ETF inflows.

Financial Advising

Financial Advising Distribution Media Taxes

Planning Details for NUA: A Tax-Saving Strategy

Fortune Financial

JULY 28, 2022

Anyone who owns company stock will eventually have to decide how to distribute their assets — typically when there is a job change or retirement involved. When you transfer most assets to a taxable account, there will be income tax, but with company stock, you can take advantage of net unrealized appreciation (NUA). . Cost Tradeoff.

Taxes

Taxes Planning Retirement Planning Distribution

Untangling The IRS’s New Finalized (And Proposed) Regulations: The 10-Year Rule, Trust Beneficiaries, Spousal Beneficiaries, Annuities, And More!

Nerd's Eye View

JULY 24, 2024

When the original SECURE Act was passed in December 2019, it brought sweeping changes to the post-death tax treatment of qualified retirement accounts. As a whole, these regulations introduce significantly more complexity to the process of tax planning around retirement accounts, particularly after the death of the account's original owner.

Distribution

Distribution Retirement Accounting Tax Planning

2025 Tax Brackets, Social Security Benefits Increase, and Other Inflation Adjustments

MainStreet Financial Planning

NOVEMBER 25, 2024

The maximum amount of earnings subject to Social Security tax (taxable maximum) will increase to $176,100 from $168,600. The individual tax brackets for ordinary income have been adjusted by inflation. On average, tax parameters that are adjusted for inflation will increase about 2.80%.

Taxes

Taxes Planning Retirement Planning Accounting

TD Ameritrade To Schwab Conversion Tips For Financial Advisors

Nerd's Eye View

AUGUST 28, 2023

Advisors will also need to familiarize themselves with Schwab's treatment of sundry accounts for fee billing and tax withholding elections for distribution, both of which differ in some key ways from TD Ameritrade. Additionally, any open trade orders (e.g.,

Financial Advisor

Financial Advisor Distribution Clients Accounting

Creating Incentive Trusts To Foster Beneficiary Legacies Without Spoiling The Kids

Nerd's Eye View

JUNE 19, 2024

how to minimize the burden of estate taxes and avoid the public spectacle of the probate process). The most common example involves trust provisions that direct assets to be distributed to beneficiaries once they obtain a certain age (e.g., at age 21 or 30) or stagger distributions at multiple ages.

Estate Planning

Estate Planning Distribution Assets Planning

How Advisors Can Help Clients Use Incentive Trusts to Foster Beneficiary Legacies

Nerd's Eye View

JUNE 19, 2024

how to minimize the burden of estate taxes and avoid the public spectacle of the probate process). The most common example involves trust provisions that direct assets to be distributed to beneficiaries once they obtain a certain age (e.g., at age 21 or 30) or stagger distributions at multiple ages.

Estate Planning

Estate Planning Clients Distribution Assets

IRS Issues New Guidance on Retirement Plan Early Distributions

Wealth Management

JUNE 26, 2024

Notice 2024-55 clarifies two exceptions to the 10% additional tax.

Retirement Planning

Retirement Planning Distribution Retirement Planning

The Latest In Financial #AdvisorTech (May 2023)

Nerd's Eye View

MAY 1, 2023

This month's edition kicks off with the news that robo-advisor Betterment entered into a $9M settlement with the SEC for misrepresenting its tax-loss harvesting practices in its client agreements and marketing materials compared with its actual practices (e.g.,

Taxes

Taxes Retirement Planning Advertising Retirement

Tax Season Is Over… For Last Year

Walkner Condon Financial Advisors

MAY 31, 2024

Breathe Easier Next Tax Season with These Planning Strategies Every year, most of us smile when we see April 15th in the rearview mirror. The completion of our tax returns being filed marks the beginning of a nine month period where we don’t need to think about funny acronyms and form numbers.

Taxes

Taxes Financial Advisor Tax Planning Distribution

Yes, Social Security Is Taxable – But Yours Doesn’t Have to Be

Carson Wealth

AUGUST 1, 2024

Making the right decisions around claiming Social Security — based on your spending needs, longevity and tax planning — could mean the difference between meeting your retirement goals or not. 1 To qualify for Social Security retirement benefits, you must pay into it through a payroll tax system.

Retirement

Retirement Taxes Distribution Tax Planning

Weekend Reading For Financial Planners (December 16-17)

Nerd's Eye View

DECEMBER 15, 2023

Also in industry news this week: Most businesses that operate in the U.S., Also in industry news this week: Most businesses that operate in the U.S.,

Financial Planner

Financial Planner Retirement Taxes Insurance

Tax Law Changes that Could Affect Your Return This Tax Season

Carson Wealth

FEBRUARY 16, 2024

By Mike Valenti, CPA, CFP ® , Director of Tax Planning It’s that time of year again! W-2s, 1099s and mortgage statements have been to hit your mailbox: a daily reminder that it is, once again, Tax Season. Overall, it was a relatively quiet year on the tax front. Although Congress isn’t done yet! More on that later.)

Taxes

Taxes Consulting Accounting Planning

Weekend Reading For Financial Planners (Nov 5-6)

Nerd's Eye View

NOVEMBER 4, 2022

We also have a number of articles on taxes and end-of-year planning: The importance for advisors of understanding current RMD rules to ensure their clients take the proper distributions (and avoid a 50% penalty in the process!). Pundits continue to expect “SECURE 2.0”

Financial Planner

Financial Planner Financial Advisor Retirement Planning Medical

2025 IRS Contribution Limits For IRAs, 401(k)s & Tax Brackets

Darrow Wealth Management

NOVEMBER 2, 2024

The IRA and Roth IRA contribution limits are unchanged but income eligibility for tax-deductible IRA contributions and Roth IRA contributions have changed. Also updated: health savings accounts, flexible spending accounts, estate and gifting limits, qualified charitable distributions and other cost-of-living adjustments.

Taxes

Taxes Wealth Management Distribution Accounting

What Documents You Should Provide to Your Tax Preparer

Carson Wealth

JANUARY 25, 2023

Mike Valenti, CPA, CFP ® , Director of Tax Planning Tom Fridrich, JD, CLU, ChFC ® , Senior Wealth Planner It’s January, so it’s officially tax season! One of the most common client questions heard by tax preparers is, “So, what do you need from me?” This can result in additional tax owed, plus penalties and interest.

Taxes

Taxes Medical Distribution Accounting

Weekend Reading For Financial Planners (Dec 24-25)

Nerd's Eye View

DECEMBER 23, 2022

From gradually raising the RMD age to 75 to expanding opportunities to make Roth-style contributions, to increasing the annual limit for Qualified Charitable Distributions, this legislation will likely impact nearly all financial planning clients!

Financial Planner

Financial Planner Retirement Planning Financial Planning Budgeting

How to Make Navigating Required Minimum Distributions (RMD) Less Taxing

Walkner Condon Financial Advisors

NOVEMBER 11, 2024

Understand the rules and strategies for Required Minimum Distributions (RMDs) for your retirement accounts to help you avoid unexpected taxes and penalties.

Distribution

Distribution Taxes Retirement Accounting

How Estate and Gift Taxes Can Impact Your Financial Plan

Carson Wealth

FEBRUARY 29, 2024

But when does gifting become a tax issue? Let’s take a closer look at estate and gift taxes and how you can approach them with a financial planning mindset. Taxes on Giving??? Why do you have to pay taxes on money you’re giving away? This continued until the federal government wised up and imposed a federal gift tax.

Taxes

Taxes Financial Planning Planning Estate Planning

Weekend Reading For Financial Planners (April 20-21)

Nerd's Eye View

APRIL 19, 2024

Also in industry news this week: The Office of Management and Budget (OMB) has completed its review of the Department of Labor's new "fiduciary rule ", indicating that it could be released in the coming days or weeks (though, like its predecessors, its ultimate disposition is likely to be determined in the courts) The IRS announced this week that it (..)

Financial Planner

Financial Planner CFP Financial Advisor Retirement Planning

Make Tax Time a Happy Time!

MainStreet Financial Planning

MARCH 7, 2023

It is March…that means you have just about 5 weeks left to get organized and submit your tax return. The tax deadline is April 18, 2023 (some taxpayers in disaster areas in California, Georgia and Alabama have an extended deadline). Gathering all your documents is crucial to complete a tax return free of mistakes.

Taxes

Taxes Retirement Planning Distribution Planning

The HSA ‘Deathbed Drawdown’: Making Tax-Efficient Distributions Of Large Balances (When There Isn’t Much Time)

Why Pre-Tax Retirement Contributions Are Better Than Roth In Peak Earning Years (Even If Tax Rates Increase)

Webinars

Trending Sources

Making Estate Planning More Tax Efficient And Equitable For Beneficiaries By NOT Just Splitting The Assets Evenly

Webinars

Utilizing Swap Powers In Irrevocable Trusts To Add Flexibility And Income Tax Efficiency

Planning For Adoption: Understanding Different Pathways And Their Costs, Tax Breaks, And Financial Assistance Available

SECURE Act 2.0: Later RMDs, 529-to-Roth Rollovers, And Other Tax Planning Opportunities

SECURE Act 2.0: Later RMDs, 529-to-Roth-Rollovers, And Other Tax Planning Opportunities

“Legacy IRA” Rollover To A Charitable Gift Annuity: Using This New Tax-Advantaged Opportunity To Help Clients Achieve Charitable And Retirement Goals

Personal finance links: retirement preparedness

Managing Taxes in Retirement using the Effective Marginal Tax Rate

New RMD Rules For Spousal Beneficiaries Of Retirement Accounts With SECURE 2.0’s “Spousal Election” Option

At the Money: Meb Faber on Tax Aware ETFs

Planning for Your First Required Minimum Distribution in Retirement

529-To-Roth IRA Rollovers: Taking Advantage Of The New Option To Move Education Savings To Retirement Savings

What if Dunning Kruger Explains Everything?

Adviser links: helping clients feel secure

Weekend Reading For Financial Planners (November 16-17, 2024)

The Basics of Required Minimum Distributions With Your Retirement Account

Effective Implementation Of A Backdoor Roth Strategy: Detailed Nuances, IRS Form 8606 (And When It’s Even Worth Doing)

Using A Testamentary Charitable Remainder Unitrust (T-CRUT) To Give Twice To Both Loved Ones And Charitable Organizations

Weekend Reading For Financial Planners (Nov 19-20)

Personal finance links: solved problems

Establishing Solo 401(k) Plans For Self-Employed Workers: Options, Contribution Limits, Deadlines, And More!

Monday links: narcissistic power-grabbers

Planning Details for NUA: A Tax-Saving Strategy

Untangling The IRS’s New Finalized (And Proposed) Regulations: The 10-Year Rule, Trust Beneficiaries, Spousal Beneficiaries, Annuities, And More!

2025 Tax Brackets, Social Security Benefits Increase, and Other Inflation Adjustments

TD Ameritrade To Schwab Conversion Tips For Financial Advisors

Creating Incentive Trusts To Foster Beneficiary Legacies Without Spoiling The Kids

How Advisors Can Help Clients Use Incentive Trusts to Foster Beneficiary Legacies

IRS Issues New Guidance on Retirement Plan Early Distributions

The Latest In Financial #AdvisorTech (May 2023)

Tax Season Is Over… For Last Year

Yes, Social Security Is Taxable – But Yours Doesn’t Have to Be

Weekend Reading For Financial Planners (December 16-17)

Tax Law Changes that Could Affect Your Return This Tax Season

Weekend Reading For Financial Planners (Nov 5-6)

2025 IRS Contribution Limits For IRAs, 401(k)s & Tax Brackets

What Documents You Should Provide to Your Tax Preparer

Weekend Reading For Financial Planners (Dec 24-25)

How to Make Navigating Required Minimum Distributions (RMD) Less Taxing

How Estate and Gift Taxes Can Impact Your Financial Plan

Weekend Reading For Financial Planners (April 20-21)

Make Tax Time a Happy Time!

Stay Connected