Tax-saving Retirement Strategies! ????️

Hi!

We are often asked how to adequately prepare for retirement. This is relevant not only to taxpayers in retirement but also to those that are proactively planning for the future. 

 

• • You can put money into your traditional IRA or Roth until April 15th following the year that you are contributing for, even if you missed Dec 31st. This can lead to tax savings. 

• • There are several states that have no income tax: AK, FL, NV, SD, TN, TX, WA, WY. New Hampshire does not tax wage income.  

• • Educational savings plans allow for tax-free growth of investment and can be used for relatives as well as children. They are also an income tax deduction for certain states. 

• • If you inherited a non-Roth retirement account, beware of Required Minimum Distributions – we see this missed regularly. 

Some common questions are:

 

• • Do I need to set up a trust for my assets, such as real estate or stocks? 

• • How will a state move affect my finances? 

• • What can I expect when selling my home?

• • Should I complete a Backdoor Roth Conversion or Mega Backdoor Roth?

• • Do I need to roll up all my old 401ks into a single plan? 

• • Are there other generational planning tools that I can use?

• • Should I gift real estate (quit claim) or gift shares or other assets to family members to avoid inheritance taxes?

• • What international components can I expect if I have foreign inheritances or non-US assets, relatives, etc.? 

For business owners, there are some new provisions these last two years: 

 

• • New retirement credits for setting up a retirement plan for your employees 

• • For sole proprietors, you can contribute to your Solo 401k by April 15th instead of Dec 31

If you want more information on any of the above topics, please reply back to this email – I will send over anything I have that is relevant & if you need more information after that, we can always schedule a phone consultation. 

Much appreciated & Looking forward to serving!

— 

George Dimov CPA

www.dimovtax.com

(866) 938-5763 toll free