If you are like most and believe income taxes, social security taxes and capital gain taxes must all go up in the near future, then you may want to consider converting taxable accounts to tax-free accounts ASAP. Incidentally, income taxes are the lowest they’ve been in decades. So … why wouldn’t you convert your IRA, 401k, 457, 403b or SEP before your taxes increase?
The question is how much longer is Uncle Sam going to allow these tax-free accounts to exist? We know from past history when tax laws change the existing rules are grandfathered in. We trust the same will prevail.
Here are just a few of the facts that could make the diﬀerence in your decision:
Over my 20+ years of service in this industry, I’ve always tried to help people through a Roth conversion because there’s no better money than tax-free money in retirement. However, now with the current increase of $4 trillion in the budget deﬁcit combined with lower income taxes, it would appear this may be the perfect time to consider a Roth IRA conversion.
Of course, if you are still working and have had a Covid-19 related hardship there are other tax related beneﬁts available to you. For instance, up to three years to pay the tax on a Roth IRA conversion.
I am sure your current advisor has already discussed all of these options with you but if not we would be honored to help you create your own tax-free retirement. My hope is these tips have been useful to you and the ones you love the most. If you have further questions, don’t hesitate to email me directly at email@example.com or contact our oﬃce at the number(s) below.
Frederic “Ric” Schilling is a Florida native, born in Jacksonville, Fl. Ric is President and founder of Senior Guardians of America, a local North Florida firm specializing in tax reduction, long term illness planning, asset protection, probate avoidance and life income planning. Ric is a National Speaker and Advocate on Senior Issues and has been featured by the Florida Times Union and WJXT, TV-4 in Jacksonville as an authority on Estate Planning and Retirement Issues. Senior Guardians has an A+ rating with the Better Business Bureau and is a member in excellent standing with the National Ethics Association. Ric Schilling is a Certified Financial Fiduciary (CFF). You may contact Ric at 904-371-3302 or 888-891-3381 Please visit: www.seniorguardian.com
This article is not intended to give tax or legal advice. Securities offered through Center Street Securities, Inc.
(CSS), a registered Broker-Dealer & member FINRA & SIPC. Investment Advisory Services offered through Center Street Advisors, Inc. (CSA), a SEC Registered Investment Advisor. Schilling and Associates (d/b/a Senior Guardians of America) and CSA are independent of CSS.