If you use a financial adviser or accountant, understand that even they might not be up to speed on the best IRA tax strategies.It pays to educate yourself, and one of the best resources is Ed Slott (IRAhelp.com)
It's the fourth quarter and that means it's required minimum distributions season.
The qualified charitable distribution has been around for a while, but it's particularly compelling under the new tax laws.
The longer the holding period, the greater the benefits of making these contributions.
Ed Slott, a retirement plan expert in suburban New York City, also favors boosting the starting age to 75, if not higher."That would be great, the better way to handle (increased life expectancy)," he said.
First, by making the donation, you avoid any long-term capital gains tax on the asset."That will help you reduce your taxable income," says Ed Slott, a CPA who educates financial advisers on IRA and retirement planning strategies.
IRA expert Ed Slott makes an important point regarding naming trusts as IRA beneficiaries.“There is no tax benefit that can be gained with a trust that cannot be gained without one.”
“The RMDs aren’t that big to start with,” said Ed Slott, an author and retirement expert."Unless you’re talking about a mega-IRA, adjusting the tables for higher longevity won’t shave off even a percentage point in the amount you must take.”
“Where I see a big benefit is if you’re doing a backdoor Roth conversion and you’re still working,” said Ed Slott, CPA and founder of Ed Slott & Co.
“The first overriding factor is ‘Never do it,’” said Ed Slott, CPA and founder of Ed Slott & Co.“You will have less money for retirement
