Blog posts by Rodgers & Associates on tax policy, tax law, tax planning, the IRS, and related topics.
Ask the Adviser: How do I handle the taxes on inheritance from a PA resident?
Whether you’ve inherited property or other assets, here’s what to know about settling the tax bill in Pennsylvania.
Ask the Adviser: How long should I keep my financial documents?
The guidance varies depending on the document. We’ll look at what to consider with bank statements, tax returns, and other common file types.
A 10-Question Pop Quiz to Test Your Tax and Investment IQ
How much do you know about the tax implications of investing? This quiz tests your knowledge and gives you a chance to brush up on the basics.
Your 2023 Guide to Year-End Tax Planning
When your financial life is complex, decreasing your tax liability requires a strategic plan. Here is where to start.
What to Know When Investing in REITs
Real Estate Investment Trusts offer a way to invest in real estate without having to actually manage property. Yet it’s wise to understand the taxation first.
The Pros and Cons of Self-Directing Your Employer-Sponsored Retirement Account
While more investment choices may be appealing, there are some issues to be aware of before taking this direction.
You’ve Been Given the Chance to Retire Early—Now What?
You’ve brought in a regular income and made wise investments throughout your life. Now you’re facing the transition from generating income to drawing down your savings.
Ask the Adviser: How can I build tax diversity into my portfolio?
Understanding how different investment accounts are taxed—and how they balance each other—is a great place to start.
Are You Maximizing the Tax Benefit of Your Charitable Gifts?
The IRS is not trying to discourage charitable giving. It is tightening requirements to limit abuses.
Whether You Are Retiring Now or in 10 Years, the Consolidated Appropriations Act Could Help You Save
Some changes take effect this year, and others are delayed until 2024, 2025, 2026, or even 2033.
Understanding RMDs Can Help You Save
Want to design a tax-efficient retirement? Learning how and when to take required minimum distributions (or RMDs) can be a key part of your overall strategy.
You missed an RMD—now what?
The rules surrounding Required Minimum Distributions are complicated and missing them can be costly. If you have made an error, follow these steps to amend it and seek a penalty waiver
7 Steps to Take When You Inherit an IRA
When Inheriting an IRA there are complex rules you will need to follow to avoid costly errors.
Are Roth Conversions Right for People Over 73?
Roth IRAs are not subject to RMD rules.
Learn These IRA Rules to Avoid Costly Penalties
Full of tricky timing concerns, the rules for IRA withdrawals are commonly misunderstood. Here, we explain five of them.
Required Minimum Distributions (RMDs): Follow the Rules to Avoid Costly Penalties
Taxpayers reaching age 72 should be aware that a portion of the funds in their retirement accounts starts to become taxable each year—and pitfalls are common.
A Guide to Required Minimum Distribution Rules for IRAs and Employer Plans
RMD rules are similar for both types of accounts, but there are some differences.
Homeownership: The Good, the Bad, and the Expensive
A home is both an asset and a liability. It can be sold like an asset at some point in the future, but there are ongoing expenses that come with homeownership.
Don’t Overlook These Inflation-Related Opportunities
Discover several ways to offset inflation through tax-efficient saving in 2023.
Ask the Adviser: How do I pay taxes on retirement income?
There are two ways to satisfy the year-round tax payment obligation for retirement income. Taxes can be withheld from your benefits, or you can make estimated payments to the IRS.
Ask the Adviser: Is it ever okay to sell investments during a bear market?
However, this doesn’t mean that you should never sell during a market decline. Here are three scenarios when doing so may be a shrewd move.
The Pros and Cons of Paying off Your Mortgage Early
Wondering whether to close out your home loan ahead of schedule? We’ll look at the benefits of doing this—and when it might be better to invest in bonds instead.
Ask the Adviser: What does the Inflation Reduction Act mean for my ACA subsidies?
The Inflation Reduction Act extends premium tax credits through 2025—and expands who’s eligible.
Ask the Adviser: What can I do to offset PA inheritance tax for my heirs?
Pennsylvania is one of only six states that requires inheritance tax. Here, we look at a variety of ways residents can reduce the tax on passed down assets.
5 Ways to Take Advantage of the Market Downturn
Look for opportunities created by lower markets, which include evaluating employer stock, performing Roth conversions, and investing before the market rebounds.
Year-Round Tax Planning Strategies
With the top marginal tax rate now at 37%—and the Medicare surtax on investment income adding another 3.8%—tax efficiency is more important than ever.
Save Early, Save Often, and Save Tax Efficiently
Opportunistic tax planning can help extend the life of your retirement savings. Here’s how.
Five Common Mistakes When Taking Qualified Charitable Distributions From Your IRA
Making charitable gifts from your IRA instead of your checkbook can be an excellent tax management strategy. Doing so helps you to fulfill your required minimum distribution while reducing taxable income dollar for dollar.
More Ways to Lessen the Impact of the SECURE Act
Here, we offer further strategies for heirs of retirement accounts to maximize the after-tax value of their funds.
What’s a Bond Ladder and How Does It Work?
This strategy of diversifying bonds can help smooth out the ups and downs of the market.
Follow This Formula When Converting an IRA to a Roth
Here, we break down the IRS pro-rata rule—a calculation that helps distinguish pre-tax and after-tax funds.
Hardship Withdrawals – What are the Real Costs?
Withdrawing money early from a retirement account is meant to be a last resort—and can come with consequences. Make sure you know these penalties and exemptions first.
You Inherited an IRA under the SECURE Act—Now What?
Follow these strategies to design a distribution plan with tax efficiency in mind.
You May Be Able to Reduce the Taxes from Inherited Assets
If you’re the beneficiary of retirement accounts or other inherited assets, it pays to learn about the IRD deduction.
Using the New Three-Legged Stool™ Strategy to Support the Weight of Your Income
Protecting your portfolio from avoidable income tax is key to creating a sound income strategy for retirement.
Know the Tax Consequences of Your Hobby
Is that new pursuit a hobby or a business? Learn the difference and follow the corresponding tax rules to avoid penalties.
What to Know Before Drawing Social Security Benefits
Deciding when to begin Social Security benefits is complicated. Weighing these factors, and running careful tax projections, can help.
How the New Three-Legged Stool™ Strategy Helps Reduce Taxes in Retirement
Learn how diversifying your taxability (not just investments) is key to creating a sound retirement plan.
Consider These Three Factors Prior to Drawing Social Security Benefits
Keep in mind that claiming Social Security benefits before FRA results in a permanent reduction in the benefit amount, whether you are claiming spousal benefits or your own.
The Differences Between Estate and Inheritance Taxes
Estate tax is levied against someone’s estate upon death and is based on the size of the total estate. Inheritance tax is levied against the heirs of an estate.
9 Retirement Decisions You’ll Want To Make With a Specialist
It’s wise to use an adviser whose primary focus is on strategies that maximize the retirement experience.
I Just Inherited an IRA From My Parent. Now What?
The new rule for adults who inherit an IRA from their parents in 2020 and beyond is that they must liquidate that account within 10 years.
Common Traps That Could Catch Early Retirees
Until you reach age 59 ½, attempting to access tax-deferred retirement accounts could trigger taxes and penalties.
12 Ways to Avoid a Penalty on Early Withdrawals
If money is taken from an IRA before age 59 1/2, a 10% excise tax penalty is applied to the amounts withdrawn—unless it meets one of the twelve exceptions.
Passive Investing: Index Mutual Funds vs. Exchange-Traded Funds (ETFs)
The difference can be summed up in two words: intraday trading. Unlike mutual funds, ETFs can be bought and sold anytime throughout the day.
Evaluating Where to Retire: Pennsylvania Vs. Surrounding States
Affordability, access to healthcare, climate, and culture are just some of the important factors to consider before moving to another state.
Who Else Wants Free Money and Lower Income Taxes?
Many are unknowingly saying, “No thank you”.
Cut Your Taxes in Half During Retirement?
Many people believe all they need to do for retirement is defer as much money as they can. This is rarely the case.
5 Ways to Minimize Your Retirement Income and Maximize Health Insurance Tax Credits
Depending on your income and household size, you may qualify for federal tax credits, a combination of credits and subsidies, or Medicaid.
Are Gifts to Children Tax-Deductible?
There is a way to get a partial deduction for money that will eventually go to your children. A charitable lead annuity trust gifts money to a charity first, and then passes assets to your beneficiaries.
Non-working Spouses Can Contribute to an IRA: Here’s How
Income earned by one spouse can be used to fund retirement accounts for both spouses.
Tax Implications of Owning a Vacation Home: What Everyone Ought To Know
Thinking of buying a vacation home? Here are some factors to consider before you make your decision.
Tax Benefits of Continuing Care Retirement Communities
Don’t overlook these benefits.
Reducing Future Taxes – What is Form 8606?
And what should you do if you have forgotten to file Form 8606?
5 Steps to a Successful NUA transaction
Retirees who own their employer’s stock in their 401(k) plan have the potential for huge tax savings using an often-overlooked tax strategy known as net unrealized appreciation (NUA). How does…
Understanding Charitable Gift Annuities
An investment option you may not have considered.
A Rule to Help You Build Your New Three Legged Stool™
Building a tax efficient New Three-Legged Stool successfully takes preparation.
Important Age Milestones in Retirement
59½? 70½ ? How does the IRS come up with these?
IRS Says Gold Is Not an Investment
Gains from gold and gains from investments are taxed differently.
What is The Widow’s Tax and How Will It Affect Me?
IRS tax code treats married people very differently than single people. When a spouse dies, the surviving spouse may often face a drop in income and a hike in income taxes at the same time.
Ignore After-Tax Savings at Your Own Peril
Your after-tax savings also offers tax advantages and other important benefits you may not be thinking about.
Don’t Get Penalized for Having Stock Market Gains
You may need to make quarterly tax payments on your capital gains.
Did You Know You Can Appeal Higher Medicare Premiums?
What can be worse than expecting to finally get a Social Security raise, only to find out that your net check actually went down due to your income two years ago?
Understanding Your Annuity Payout Options
The maturity of the annuity at age 85 may actually be a gift to annuity owners to further contemplate their exit strategy of this tax-deferred investment.
Pay Taxes Once, Instead of Four Times, Using Your IRA’s Required Minimum Distribution
Learn whether you can use your IRA’s Required Minimum Distribution (RMD) to pay some or all of your quarterly tax estimates.
Annuity Traps Part 1: Living Benefits
Learn about different types of annuities and understand how they can become a valuable component of your retirement plan.
Using your Health Savings Account (HSA) as a Retirement Tool
Is funding an HSA right for you? Learn how you can use this account to pay for a number of medical expenses in retirement.
How to Legally Transfer After-Tax Money into a Tax-Free Roth IRA
Understand your path for rolling after-tax money in employer-sponsored plans to a Roth IRA and the rules that need to be considered to complete this transaction properly.
What You Need to Know about Tax Loss Harvesting
It’s best to approach tax-loss harvesting cautiously and keep your broader financial plan in mind when making any tax planning decisions.
The Potential Dangers of Rolling Your Company Stock into an IRA
If you own large quantities of company stock held within a retirement plan, rolling it into a tax-deferred IRA may not be the best strategy. Learn when a Net Unrealized Appreciation (NUA) transaction is the right choice to maximize your tax efficiency.
Avoiding the Unpleasant Surprise of a Mutual Fund Capital Gain Distribution
If you’re investing in mutual funds at the end of the year, exercise extra care to avoid paying tax on gains that are earned internally by the fund.
The Risks of Adding Your Child to Your Home’s Deed
Many people think it is a good idea to put their child’s name on the deed to their home, especially if one of the parents is deceased. Usually the motivation is…
What You Need to Know About RMDs
Many clients have questions about when they need to withdraw money from their IRAs and what the rules are for Required Minimum Distributions (RMDs). Learn how to evaluate distribution options and avoid penalties that arise when RMDs are not met.
Should You Name Your Estate as Your IRA Beneficiary?
Why naming your Estate as your IRA Beneficiary may not be a good choice.
What is the Rodgers & Associates Financial Planning Process?
Our approach to retirement planning combines the seven-step process outlined by the Certified Financial Planner Board of Standards with our own unique focus on maximizing tax efficiency, managing risk, and minimizing expenses throughout retirement.
How Tax-Efficient Will Your Withdraws be in Retirement? What’s Your R/D Factor™?
Our New Three-Legged Stool™ strategy and R/D Factor™ help us keep taxes lower for our clients in retirement
As You Approach Retirement, How You Save is Extremely Important
In planning for retirement, how you save is just as important as how much you save. Learn how you can save tax-efficiently by diversifying your assets across accounts that are taxed differently.
Use the Ten Years Prior to Retirement to Position Yourself for Success
The 10-year period before you retire can matter more to your retirement success than any other.
Will Changes to the Life Expectancy Tables for RMDs Make a Difference?
Since the majority of retirees take more than their RMD annually, new life expectancy tables should not have a significant impact.
The Alternative Minimum Tax and Form 6251
Get familiar with the Alternative Minimum Tax and learn what triggers this part of the tax code.
6 Ways to Help You Reach Your Retirement Goals
It’s never too early to start planning for retirement. By setting a strategy— and sticking to it—you can help achieve your goal of financial independence sooner.
What should you do if your employer offers a lump-sum cash payout?
Learn how to weigh the benefits and drawbacks of taking a lump-sum cash payout from your pension plan.
Dos and Don’ts of Retirement Planning
Use these tips and strategies about spending, saving, and asset allocation to reach your retirement goals.
Are Qualified Charitable Distributions (QCD) Permitted from SEP IRA, SIMPLE IRA, 401(k) or 403(b) Accounts?
Qualified Charitable Distributions (QCDs) can be given from some accounts other than IRAs to eliminate tax on donations. Learn how to plan effectively to minimize future tax liability.
Are You Missing Out on These 3 Common Tax Strategies for Retirees?
There are a few tax strategies for retirees that could increase your refund or at least help to trim the tax you owe.
Is Your Vacation Home a Residence or a Rental Property?
Understand how the IRS differentiates between these investments when planning how to use the property personally.
The Waiting Game: When is the Best Time to Begin Social Security Benefits?
Social Security gives workers the option to take benefits anytime between the ages of 62 and 70, and it offers some incentives to those who are willing to wait. Waiting eight…
What is Concierge Medicine?
Concierge medicine1 is a type of doctor/patient relationship in which patients pay an annual retainer fee to their doctor in exchange for more personal care. The doctor can then limit their…
A Special Purpose Entity Enables Individual Participation in PA’s EITC Program
Special purpose entities in PA allow individual donors to participate in tax credits previously only available to businesses.
How Qualified Charitable Distributions Can Impact Your Taxes and Favorite Charities
Gifting through a Qualified Charitable Distribution can be one way to keep the tax benefits of a donation. Learn about the rules and benefits of QCDs.
Choosing a State for Retirement
Did you know retirement income is not taxed by all states? We’ll help you determine which state is best for retirement on this edition of Project Wealth.
Tax-Efficient Investing: Why Tax Planning and Investments Should Work Together
Managing an investment portfolio efficiently requires knowledge of income taxes and your tax bracket specifically.
How Do Retirees Get Paid in Retirement?
What happens when the paychecks stop, and retirement begins? It is one of the most pressing questions we hear from people approaching retirement.
Understanding the 5 Tax Filing Statuses: Which is Best for You?
Filing status is especially important because it determines, in part, the tax rate applied to taxable income, the amount of the standard deduction, and the types of deductions and credits available.
The Difference Between Stock Options and Restricted Stock Units (RSU’s)
Complexity abounds with respect to a RSU or option decision.
5 Strategies for Gifting to Adult Children
Gifting to adult children can be a rewarding way to enrich their lives.
Understanding the Tax Implications of Company Stock Based Compensation
If you are an executive at a large company, you may receive stock in your company at some point as a form of compensation.
What You Need to Know About Retirement Contribution Limits
Saving more tax-free dollars for retirement got easier in 2019 after a six-year wait! The inflation-adjusted maximum annual contribution for a Roth IRA finally increased to $6,000.
What is a HELOC? How they Differ from Conventional Mortgages
HELOC stands for home equity line of credit. Like a mortgage, it’s a loan made against the equity in your home.
Why You Should Consider Donating Stock to Your Church in 2018
How to pay it forward in 5 easy steps
