Is It the End for These Three Tax-Saving Strategies? - 51

On YMYW podcast 51, Joe Anderson, CFP® & Alan Clopine, CPA discuss three major tax-saving strategies that might be going away: the backdoor Roth IRA, net unrealized appreciation (NUA) and the stretch IRA. Learn how you can take advantage of them before it’s too late. Original publish date July 30, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.

00:00 - Intro

04:07 - “That’s why the government is trying to get rid of it (the backdoor Roth IRA), because it’s a way for those who make a lot of money to do a Roth contribution kind of the backdoor way.”

05:25 - “The downside of doing a conversion is that you have to pay the tax on the dollars that go into the Roth.”

05:45 - “If you’re under 70 ½ and you have earned income, you can contribute to a traditional IRA.”

09:57 - “The most important investment, by far that you can make is an investment you make in yourself.”

11:56 - “Our opinion is that if you don’t have a Roth [IRA], start one now.”

17:17 - “You want to make sure you understand all of these rules to truly maximize the amount of tax-free income you have in retirement.”

20:32 - “We’re talking about a couple different strategies that you might want to consider before the door closes on you. We talked about backdoor Roth IRAs and here’s another one – net unrealized appreciation.”

24:04 - “Capital gain rates – event though they’re a lot cheaper than ordinary income rates, in some cases about half of ordinary income rates – the higher your capital gain, the higher the rate goes up.”

31:15 - “If you pass away with a retirement account, it is completely different from any other asset that you will pass on to the next generation.”

35:04 - “It’s a matter of taking control over your own taxes to figure this out so not only yourself will be in a better spot or your spouse, but your kids as well with regards to your IRA.”