IFP Insights

This blog will talk about what GRATs are and who they might be suitable for, as well as their pros and cons.

Social Security benefits play a vital role in providing or augmenting income for retirees, dependents, and those with disabilities. But, before you start applying for payments, it’s important to understand the strategies you might consider deploying to help maximize these benefits.

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.