Hi Jan,
A tax bill of zero can feel like an easy win, and sometimes it is. But in the years between leaving work and the start of Social Security and required minimum distributions, a very low tax bill can also mean unused room in the lower tax brackets that may not be available later. This week, we look at why a low income year can be an opening for Roth conversions and capital gains harvesting, and how to weigh those choices against the rest of your tax return.
| | | | A Zero-Dollar Tax Bill Can Be a Missed Opportunity Paying no federal income tax can feel like an obvious win, especially after decades of watching taxes come out of every paycheck. Once work ends, income often drops, deductions may cover much of what remains, and it can be satisfying to see little or nothing owed when your tax return is finished. The problem is that tax planning is not really about producing the lowest possible tax bill in any single year. It is about deciding when to recognize income over multiple years while you still have some control over the timing.
By Retirement Researcher | | | | The Tax Decisions Worth Reviewing Before Year-End By the time you file your tax return, most of the decisions that determine how much tax you owe have already been made. Your income has been earned, investments have been bought and sold, retirement account distributions have been taken, and charitable gifts have been made. Once December 31 passes, many of the opportunities you had to change the outcome disappear.
By McLean Asset Management
| | | | Why Your Tax Bracket Doesn’t Tell the Whole Story
Alex and I take questions from our recent YouTube Live on Roth conversion timing, blending IRA withdrawals with an inherited taxable account, and whether to use Roth conversion room to prepay a mortgage. We also cover how a mostly taxable portfolio fits an early retirement and where to learn more about effective marginal rate tax maps.
| | | | | | | | Artificial intelligence is changing how we work and communicate, and it is changing how criminals operate too. Phishing emails are more convincing, voices and images can be replicated, and scams can be tailored using personal details that are easy to find online.
We are hosting a free webinar with our sister firm, McLean Asset Management, on Monday, October 19th, from 1 | | | |
