Our weekly roundup of tax-related investment strategies and news clients may be thinking about.
Calculating the tax bite when converting a 401(k) to a Roth IRA: Instead of converting the entire 401(k) assets to a Roth IRA within a year, clients may want to consider spreading the conversion over several years to minimize the impact on their income taxes, according to Kiplinger. A Roth conversion is a wise move if clients are currently in a low tax bracket and face the possibility of getting bumped up to a higher one when they start taking distributions. --Kiplinger
5 tax strategies to boost your retirement savings: Clients may want to invest in taxable and tax-advantaged accounts for greater flexibility when tapping their retirement savings, according to MarketWatch. Advisors can help clients understand the terms and importance of their investments and strike a balance in allocating their assets in taxable and tax-advantaged accounts. -- MarketWatch
Nine tax-friendly ways to save beyond a retirement fund: Clients who are looking to save have many options, including 529 plans and ESA Coverdell accounts, that can save them on taxes, according to The Christian Science Monitor. Investing in municipal bonds, real estate and annuities can also help reduce the tax burden on savings. Other tax-friendly investment options for retirement savers are master limited partnerships, whole life insurance, index funds and exchange-traded funds. -- The Christian Science Monitor
Last-minute ways to lower your client's tax bill: Clients can minimize their tax burden by deferring some of their income into next year, according to Medscape. They also may want to raise their retirement savings rate. Clients who own businesses may also boost their spending and have the amount included in their itemized deductions on their returns. Other tax-saving strategies include tax-loss harvesting and charitable donations. -- Medscape
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