Category Archives: Tax Planning

  • You’re Maxing Out Your 401(k). Should You Invest After-Tax in an IRA?

    If you are maxing out your 401(k) plan, investing after-tax in an IRA may be worth considering. While the contribution won't be tax-deferred, it will still grow tax-free. Plus, it can provide an additional source of income in retirement. And since you contributed with after-tax dollars, you can withdraw them tax-free, and only the growth will be taxed in retirement. This gives you some control over your investment income ... Read More

  • Spousal IRA – How to Save for Retirement AND Pay Less Taxes

    If you and your spouse both have access to an employer-sponsored 401(k) plan, retirement saving is as easy as specifying the pre-tax contribution amount to be deducted from your paycheck. But for many couples, it’s a little more complicated and involves a spousal IRA. The decision may be for one spouse to leave full-time work for a period of time to care for children or parents. Or one spouse may have started a new business that currently doesn’t generate any income ... Read More

  • Asset Location: A Tax Lens on Retirement Investing

    You’ve built a retirement nest egg by saving consistently and investing carefully. An asset allocation that allowed growth but gradually reduced risk as you got closer to retirement was probably part of the plan. But once you’re in retirement, your focus shifts a bit to also include asset location. The value of having accounts with differing tax statuses becomes apparent when you set out to create an income stream and start withdrawing money. The return profile of the asset and how it is taxed can make a great deal of difference to both the overall return of the portfolio over time, and the amount of taxable income generated each year ... Read More

  • The Secure Act of 2022

    The SECURE 2.0 Act of 2022, a bipartisan retirement savings bill, was included in the $1.7 trillion budget bill that President Biden signed on December 23, 2022. Since the retirement savings law makes numerous changes to the current rules governing retirement accounts, SECURE 2.0 is anticipated to reshape retirement tax incentives for years to come. This includes some related tax breaks as well as (but is not limited to) 401(k), 403(b), IRA, and Roth accounts. And those modifications might influence your personal finances and retirement savings. Our retirement experts at Hennion and Walsh are prepared to lead you in the right direction. We’ve compiled a list of the most essential changes to note ... Read More

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