Earlier today, the IRS officially communicated the limits to retirement plan contributions for 2020. Read our recent post here to ensure you understand the proper limits when it comes to funding, and saving for, your retirement.
10 Planning Strategies for Year-End
As we approach the end of 2019, individuals and businesses may have unique opportunities to creatively boost savings, make investments, transfer wealth, implement certain tax strategies, and more. Proper planning and implementation now, with over two months remaining in 2019, can save a lot of headaches and rushed decision-making during the final days of December.
Two-Step Roth IRA Conversions & Considerations
High-income taxpayers face restrictions on their ability to contribute to a Roth IRA. Through proper planning, however, Traditional IRA assets may be efficiently converted into Roth IRA assets at no tax-cost. If managed appropriately, a taxpayer can effectively circumvent the income limitations by engaging in a two-step contribution and conversion process (Two-Step Roth IRA), also commonly referred to as a “Backdoor” Roth contribution. Methodically engaging in this strategy may generate significant tax savings over time.