It's time for tax planning 2019 and taking advantage of the current (lower) tax rates. Action: "Convert traditional retirement account balances to Roth accounts. The deemed taxable distributions that result from Roth conversions will increase AGI and potentially your exposure to the 3.8% NIIT in the conversion year. However, income and gains that build up in a Roth IRA won't be included in your AGI in future years. That's because qualified Roth distributions are federal-income-tax-free. Qualified Roth distributions are also free of the 3.8% NIIT." See more Year-end Tax Strategies
Newsletter offered by Julie Jason, founder of Jackson, Grant Investment Advisers, Inc., and an award-winning columnist and author. Please visit her site and blog at https://juliejason.com/. See also Three reasons you may not want to convert. Of course, talk to an advisor to understand how conversion is best for you.)
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