Tax Planning Archives

28 06, 2021

Where Could Interest and Tax Rates Be Headed?
Where Could Interest and Tax Rates Be Headed?

Where Could Interest and Tax Rates Be Headed?

BML Wealth Marketing2021-06-28T06:42:45-07:00June 28, 2021|Estate Planning, Federal Reserve, Tax Planning, Taxes|

Are you aware of the latest news that could affect your money? We recently heard from Federal Reserve Chairman Powell regarding interest rates, plus the Biden administration released a “Green Book” outlining some potential tax-increasing measures. There are several big changes proposed, and if they come to fruition, you may need to review your tax minimization strategy. The Latest from the Federal Reserve Powell indicated the possibility of interest rate increases in 2023. The Fed’s projections point to two rate hikes in 2023, but Powell says that’s far from certain. He pointed out that we’re [...]

2 05, 2021

Prepare for Taxes On Your Retirement Accounts
Prepare for Taxes On Your Retirement Accounts

Prepare for Taxes On Your Retirement Accounts

BML Wealth Marketing2021-05-02T22:23:23-07:00May 2, 2021|Retirement Income, Tax Planning, Taxes|

The Biden administration has already spent $1.9 trillion on COVID relief and has plans to spend trillions more on infrastructure projects, Medicaid expansion, education, and climate investments. In order to fund these projects, the administration has proposed several tax-increasing measures on corporations and individuals. You may think you won’t have to worry as much about your tax burden in retirement, but you could be wrong. You may need to prepare for taxes on your retirement accounts. How Are Distributions Taxed? Distributions from traditional retirement accounts such as IRAs, 401(k)s, 403(b), 457, and Thrift Savings plans [...]

5 04, 2021

4 Types of Retirement Income and How They’re Taxed
4 Types of Retirement Income and How They’re Taxed

4 Types of Retirement Income and How They’re Taxed

BML Wealth Marketing2021-04-05T08:18:55-07:00April 5, 2021|Income Planning, Retirement Income, Tax Planning|

Taxes don’t stop when you stop receiving a paycheck. If you have multiple sources of income in retirement, your tax burden could be substantial. By understanding how different types of income are taxed, you can develop income planning strategies that work to lower your taxes throughout retirement. Start with these 4 types of retirement income and how they’re taxed. Investments held for over a year are taxed at preferential rates. Investments that are held for one year or less are considered short-term capital gains. Short-term gains are taxed at ordinary income rates. However, investments that [...]

21 03, 2021

5 Things to Know About COVID and Your Taxes
5 Things to Know About COVID and Your Taxes

5 Things to Know About COVID and Your Taxes

BML Wealth Marketing2021-03-22T15:01:53-07:00March 21, 2021|Tax Planning, Taxes|

We’ve entered a full year of living with the pandemic, and there have been several events during the year that could affect you this tax season. In April 2020, the CARES Act (Coronavirus aid, Relief, and Economic Security Aid) provided relief to individual Americans and businesses and temporarily altered some parts of the tax code. While this was almost a year ago, the implications for you may extend to this year’s tax season. Here are 5 things to know about COVID and your taxes. Stimulus Checks If you received a stimulus payment in 2020, you [...]

1 03, 2021

3 Reasons Your Tax Burden Could Actually Increase In Retirement
3 Reasons Your Tax Burden Could Actually Increase In Retirement

3 Reasons Your Tax Burden Could Actually Increase In Retirement

BML Wealth Marketing2021-03-01T08:13:25-08:00March 1, 2021|Tax Planning, Taxes|

Will your tax burden dramatically decrease in retirement once you stop receiving a paycheck? Maybe not – maybe it will increase. Between retirement account distributions, Social Security benefits, and investments, you may have reasons to review your tax strategy in retirement. We may be experiencing relatively low taxes right now, but the recent change in leadership in Washington and a growing national debt could change that. Let’s look at 3 reasons why your tax burden could actually increase in retirement. Required Minimum Distributions Distributions from traditional retirement accounts such as IRAs, 401(k)s, 403(b), 457, and [...]

21 02, 2021

3 Ways Your Advisor Can Help You This Tax Season
3 Ways Your Advisor Can Help You This Tax Season

3 Ways Your Advisor Can Help You This Tax Season

BML Wealth Marketing2021-02-21T20:16:52-08:00February 21, 2021|Financial Planning, Tax Planning, Taxes|

As we enter this tax season, you may realize that your situation has changed. Maybe you were affected by the CARES Act, COVID, or went through a life change such as retirement, or became empty nesters. All of these things can affect how you file our taxes and now is the time to consider them. It’s also a good time to review your overall finances and make sure you’re sticking to your plan – or resolve to update the plan with the help of a financial advisor. There are many ways your advisor can help [...]

31 01, 2021

Concerned About Taxes On Your Retirement Account?
Concerned About Taxes On Your Retirement Account?

Concerned About Taxes On Your Retirement Account?

BML Wealth Marketing2021-02-05T09:05:45-08:00January 31, 2021|Retirement Planning, Tax Planning|

You might expect your tax burden to decrease in retirement – after all, you’re no longer receiving a paycheck that incurs income tax, the payroll tax, and Medicare tax. However, your income in retirement could be significant, between investment income, rental properties, pensions, Social Security, and retirement account withdrawals. Starting at age 72, you likely must take Required Minimum Distributions (RMDs) from your traditional retirement accounts, which could potentially increase your taxable income. And considering the mounting national debt and a new president who has proposed several tax-increasing policies, you might be concerned about taxes [...]

25 01, 2021

3 Reasons to Review Your Tax Strategy
3 Reasons to Review Your Tax Strategy

3 Reasons to Review Your Tax Strategy

BML Wealth Marketing2021-02-02T18:07:08-08:00January 25, 2021|Tax Planning, Taxes|

Now that President Biden has been sworn in and the Senate is evenly split between Republicans and Democrats, it’s time to consider what tax policy changes could be coming. President Biden and Vice President Harris proposed several tax-increasing measures on the campaign trail, and it’s important to consider how they could affect you. Here are 3 reasons to review your tax strategy. Social Security Base and Income Tax Rates May Increase Right now, only earnings of up to $142,800 incur the Social Security payroll tax. President Biden has proposed also imposing it on earnings of [...]

7 12, 2020

4 Things You Can Do By the End of the Year to Help Lower Your 2020 Tax Bill
4 Things You Can Do By the End of the Year to Help Lower Your 2020 Tax Bill

4 Things You Can Do By the End of the Year to Help Lower Your 2020 Tax Bill

BML Wealth Marketing2021-08-01T22:04:57-07:00December 7, 2020|Tax Planning|

Here come the holidays and everything that goes with them – traveling, cooking, buying gifts, and of course, spending time with the people we love. It’s a busy time of year when finances can take a back seat, but don’t wait to review your tax situation. Here are four things you can do by the end of the year that could help lower your 2020 tax bill. Review Your Retirement Account Contributions And Distributions Starting at age 50, workers can make increased “catch-up” retirement plan contributions. In 2020 you can contribute up to $7,000 to [...]

7 09, 2020

3 Reasons Why Your Tax Burden Could Increase In Retirement
3 Reasons Why Your Tax Burden Could Increase In Retirement

3 Reasons Why Your Tax Burden Could Increase In Retirement

BML Wealth Marketing2020-09-07T21:48:55-07:00September 7, 2020|Tax Planning|

Most people assume that their tax burden will dramatically decrease in retirement once they stop receiving a paycheck, but this isn’t always true. A high tax bill is one retirement risk to be aware of and to try and mitigate. We may be experiencing relatively low taxes right now, but a change in leadership in Washington and a growing national debt could change that. Let’s look at 3 reasons why your tax burden could increase in retirement. Required Minimum Distributions Distributions from traditional retirement accounts such as IRAs, 401(k)s, 403(b), 457, and thrift savings plans [...]