Key Points

References

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Key Points

References

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States That Don't Tax Income

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming

States That Don't Tax Retirement Distributions

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Another way to reduce RMDs is by buying a deferred income annuity. You can invest up to 25% of your IRA or 401(k) account (or $135,000, whichever is less) in a type of deferred income annuity known as a qualified longevity annuity contract (QLAC). When you reach a specified age, which can be as late as 85, the insurance company turns your deposit into payments that are guaranteed to last the rest of your life

The portion of savings used for the annuity is excluded from the calculation to determine your RMDs. For example, if you have $500,000 in an IRA and transfer $100,000 into a QLAC, your RMD is based only on the remaining $400,000. This doesn’t eliminate your tax bill—it just defers it. The taxable portion of the money you invested will be taxed when you start receiving income from the annuity.

QLACs offer other advantages to retirees who want guaranteed income later in life. Because you’re deferring the income stream, payouts are much higher for deferred income annuities than they are for immediate annuities, which start payouts right away. For example, a 65-year-old man who invests $100,000 in an immediate annuity will receive a payout of $493 a month, according to www.immediateannuities.com. That same amount invested in a deferred-income annuity that begins payments at age 80 would pay $1,663 a month.

define options for accumulation period, investment guaranteed minimum returns, principal return to beneficiaries etc

Medicare Premium Fees for Part B for 2024

https://www.federalregister.gov/documents/2023/10/17/2023-22823/medicare-program-medicare-part-b-monthly-actuarial-rates-premium-rates-and-annual-deductible#:~:text=The%20standard%20monthly%20Part%20B,amount%20required%20under%20current%20law.

This details what the rates are and what the coverages are

https://www.humana.com/medicare/medicare-resources/irmaa

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Potential Value Opportunities

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-actuarial-rates-premium-rates-and-annual-deductible#:~:text=The%20standard%20monthly%20Part%20B,amount%20required%20under%20current%20law.

This details what the rates are and what the coverages are

https://www.humana.com/medicare/medicare-resources/irmaa

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Potential Value Opportunities

Earned Income Tax Credit for low to moderate wage earners

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc

If qualified, can actually pay money after removing your tax liability based on income levels

Child Care Tax Credit

A credit on taxes for children you care for

Estate Planning - maximize wealth transfers

Plan to minimize Federal, State regulations on inheritance and estate taxes

Know what the limits are for Federal and State inheritance and retirement taxes

Choose your domicile carefully and watch the State liabilities for your children

Build an estate plan from your financial plan and assets

Create a will with an executor and a backup executor designation

Options to minimize taxes on real estate transfers uisng living trust or ?

https://www.irsyahoo.govcom/credits-deductionsfinance/individuals/earned-income-tax-credit-eitc

If qualified, can actually pay money after removing your tax liability based on income levels

Child Care Tax Credit

A credit on taxes for children you care for

Estate Planning - maximize wealth transfers

Plan to minimize Federal, State regulations on inheritance and estate taxes

Know what the limits are for Federal and State inheritance and retirement taxes

Choose your domicile carefully and watch the State liabilities for your children

Build an estate plan from your financial plan and assets

Create a will with an executor and a backup executor designation

Options to minimize taxes on real estate transfers uisng living trust or ?

https://www.yahoo.com/finance/news/generational-wealth-7-reasons-not-183924989.html

Of course, in some instances, bequeathing your home to your children after you die could be the best move. As long as everyone is in agreement on the terms, leaving your home to a child can help preserve generational wealth while giving young adults a head start with a house of their own.

If you decide you want your child or children to take over your home after you die, a trust might be the best way, according to ISVGlaw.com, the website for Melville, NY-based legal firm Schneider, Garrastegui & Fedele. A trust can help your children avoid capital gains taxes on the property, help avoid the hassles of probate, and keep the home under your control until you dienews/generational-wealth-7-reasons-not-183924989.html

Of course, in some instances, bequeathing your home to your children after you die could be the best move. As long as everyone is in agreement on the terms, leaving your home to a child can help preserve generational wealth while giving young adults a head start with a house of their own.

If you decide you want your child or children to take over your home after you die, a trust might be the best way, according to ISVGlaw.com, the website for Melville, NY-based legal firm Schneider, Garrastegui & Fedele. A trust can help your children avoid capital gains taxes on the property, help avoid the hassles of probate, and keep the home under your control until you die.

Gifting Assets to Parents to Create Higher Step up Basis on Inheritance

there is a way to increase the cost basis before a sale.

taking advantage of Section 1014 of the Internal Revenue Code, also known as a step-up in basis.

If you're a wealthy young American and you expect to make a substantial profit on the sale of assets like stocks or real estate, here's how gifting those assets to your parents could help you save a fortune.

So, if you gave stock worth $36,000 to your mom and dad today, you could transfer it tax-free by giving them each $18,000. Say the stock went up in value and was worth $336,000 by the time your second parent died in 20 years, the "cost basis" would reset to $336,000. If you sold the stock for $340,000 at that time, you'd only have to pay capital gains taxes on $4,000. Estate taxes would only be a concern if their estate crosses the threshold.

Potential Challenges

2024 Election Tax Impacts Reviewed

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