Tax planning determines retirement income strategies

I specialize in ‘lifetime’ tax reduction planning because such it affects the amount of taxes that you pay your lifetime and what your overall investment and retirement plans will be. The reduction of various taxes over each year and awareness of tax trigger events that create what I call tax traps must be actively planned[…]

What is a Retirement Account?

What constitutes a retirement plan? Individual Retirement Arrangements (IRAs) Roth IRAs 401(k) Plans 403(b) Plans Tax-deferred annuity SIMPLE IRA Plans (Savings Incentive Match Plans for Employees) Small employers not currently sponsoring a retirement plan SEP Plans (Simplified Employee Pension) SARSEP Plans (Salary Reduction Simplified Employee Pension) Pre-SEP Payroll Deduction IRAs Profit-Sharing Plans Defined Benefit Plans Money Purchase Plans Employee[…]

Don’t pay tax twice: Follow non-deductible IRA contributions with Form 8606

If you have an IRA and in some years you made non-deductible (you could not deduct them in your annual personal taxes) contributions to it, then they should be accounted for annually by using Form 8606. If you fail to account the cumulative non-deductible contributions (also known as basis) then the IRS may treat all[…]