If you have a significant balance in your traditional IRA, you may want to consider Roth IRA conversions. This can be done gradually over several years to manage tax brackets. If done properly, a multiyear approach could allow you to convert a sizable portion of your savings to a Roth IRA while limiting the tax… [keep reading…]
Tag: Tax Tip Tuesday
Tax Tip Tuesday – Which IRA Is Right for You?
To contribute to an IRA, you must have taxable compensation. This includes income from wages, salaries, tips, commissions, and bonuses. It also includes net income from self-employment. For couples where one spouse doesn’t work, the Spousal IRA provision allows the working spouse to contribute to a Traditional or Roth IRA on behalf of the non-working spouse. The non-working spouse… [keep reading…]
Tax Tip Tuesday – Maximize Your QBI Deduction This Tax Season
The qualified business income (QBI) deduction can be taken by individuals who own sole proprietorships, partnerships, S corporations, and certain trusts and estates. It is limited to twenty percent of a taxpayer’s qualified business income, as well as twenty percent of REIT (Real Estate Investment Trust) dividends, and PTP (Publicly Traded Partnership) income. The deduction… [keep reading…]