Big tax bills can devastate your retirement if your investments are not tax-advantaged. MarketWatch’s Robert Powell and Andrea Coombes talk about strategies to employ before and during retirement to lower your taxes.
Tax diversification dictates establishing a Traditional IRA, a Roth IRA and a taxable account. This provides flexibility to manage your tax bill in retirement. Withdrawals can be controlled to manage your tax bracket.
Asset location dictates placing taxable investments in tax sheltered or tax deferred accounts.
The conversion of a Traditional IRA to a Roth IRA is usually a taxable event. A conversion may be more attractive in a low tax year.
Taxpayers Making $200,000 (Single), $250,000 (Couples) Would See an Investment Surtax of 3.8% on Interest, Dividends, Capital Gains and the Like on Sources Above the Limits