A Financial Planning Accident Waiting To Happen
Published Tuesday, June 29, 2021 at: 9:10 PM EDT
Tax hikes are an accident waiting to happen.
The likelihood of higher tax rates suddenly makes converting traditional IRA investments into Roth IRAs more important.
Higher taxes are widely anticipated, and our job as financial professionals is to alert you to what’s ahead. Before the tax wreck of 2021, please brace yourself by planning now.
The IRS is hiring more tax auditors and President Biden has proposed tax hikes on high income and high net-worth individuals. Avoid the worst effects of the shift in federal tax policy by planning. Keep your eyes wide open and be prepared for what’s about to hit.
If your retirement assets are in IRA accounts, in the event of a stock market selloff, the drop could present a tax-saving opportunity. The likelihood of higher tax rates may make converting traditional IRA investments into Roth IRAs suddenly more important.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
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