IFP Insights

What education savings programs are right for you? A 529 plan is one of the most common educational investment options, but there are other choices.

HSAs offer you three potential opportunities for tax savings. Your account contributions are tax free (that is, tax deductible), the earnings in your account grow tax free, and you can withdraw funds from your HSA, tax free, so long as they are used to pay for qualified health care expenses, such as deductibles, co-payments, and hospitalization costs. (HSA funds may not be used to pay health insurance premiums.)

By taking advantage of a QCD, taxpayers can fund a charitable gift of up to $100,000 using their IRA instead of taking a Required Minimum Distribution (RMD). In addition to helping investors advance their charitable initiatives, QCDs entitle donors to income tax deductions that can lower their taxable income for the calendar year in which they’re made.

Understanding what your distribution requirements will be over the course of your retirement can help ensure that you don’t find yourself on the hook for a substantial tax penalty. Further, coming up with a plan ahead of time can help you manage your tax liability and provide you with more options for allocating your required distributions. Learn more about what every retiree should know about RMDs.

This year, celebrate Earth Day by looking at your portfolio and determining if ESG investing is suitable for you and your values.

Tax-loss harvesting is a process that involves deliberately selling securities at a loss in order to offset your earnings from other securities, thereby potentially reducing your tax burden. In other words, if you have an investment that’s lost value, you can sell it and deduct the value of that loss from the gains you realize elsewhere. That deduction lowers your total taxable income for the year, which may result in tax savings.

An estate plan outlines how you’d like your assets to be distributed upon your passing. It helps ensure that your wishes are upheld, your legacy is cemented, and your loved ones are cared for. It can also spare your family from unnecessary confusion, conflict, and tax burdens.

Taxes may be an inevitability but there are ways you can reduce your total tax obligation by planning proactively. For instance, a Roth IRA may allow you to make tax-free withdrawals during retirement and you can roll funds into a Roth from your tax-deferred retirement accounts.

Floods are among the most frequent and costly natural disasters that are especially prevalent in the spring. Last year alone, excessive rainfall brought flooding to many locations, making it the second deadliest year for flooding in the past five years.

Have you ever wondered how to apply March Madness to your financial well-being? There may be parallels between your bracket selection and investing.