The remaining weeks of 2020 present the opportunity for us to help clients save thousands of dollars in taxes. Here’s a quick-check list of actions that can be taken NOW:
1. In-depth reviews of taxable investment portfolios-
· Identifying opportunities to take gains & re-balance holdings
· Neutralize (eliminate) taxes on capital gains, and
· Establish a higher cost basis to contain taxes in future years.
2. Convert? Or not convert to a Roth IRA-
· Rolling IRA assets into a Roth IRA in December reduces the “5-year rule” to just 4 years, and
· Executing a Roth conversion during years of lower earned income helps to eliminate future taxes,
3. Get more value by improving 401k account performance-
· Contribute a higher sum of wages to maximize employer-matching,
· Evaluate your eligibility to contribute after-tax dollars into the Plan,
· Re-allocate the 401k allocation to maximize performance within your risk tolerance, and
· Establish a regular plan to evaluate your 401k allocation quarterly and make changes when needed.