What’s the best way to save for retirement? The surprising answer is a Health Savings Account (HSA). The HSA is a tax-advantaged medical savings account, much like an IRA, that’s paired with a high-deductible health plan. Why is an HSA such a great way to save for retirement? Because an HSA is the only tax-advantaged account that gives you three important … [Read more...]
2021 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
Here’s good news if you own a stock portfolio. (And if you’re a reader of the Tax Reduction Letter, I’ll bet you do.) If you know how to play the game, you can turn your stock portfolio into a year-end tax-reducing machine. The basics are really pretty straightforward. Avoid the high taxes (up to 40.8%) on short-term capital gains and ordinary income.Lower the taxes to … [Read more...]
Principal Residence Gain-Exclusion Break (Part 3 of 3)
To get my complete, FREE articlewith all the details… NOTE: This issue of the Tax Reduction Letter is a“refresher” on an important topic. It’s the last ofa three-part series and I suggest you review parts 1 and 2to get complete information. Are you about to sell your home, or thinking about putting it on the market? Then I’ve got good news for you… You … [Read more...]
How 529 College Savings Account Withdrawals Are Taxed
To get my complete, FREE articlewith all the details… Definition: 529 Plan. 529 plans are tax-advantaged accounts thatare used to help pay for qualified educationalexpenses. What you may already know: The big advantage of a 529 plan is that “qualified” withdrawals from the account are usually federal and state income-tax free. The plan is a great way to … [Read more...]
A Sneak Peek Inside an IRS Playbook
To get my complete, FREE articlewith all the details… You open the mailbox and there it is… That dreaded letter from the IRS informing you that you’re going to be the target of a comprehensive audit. Ouch! (By the way, the stiff drink you gulp down, and the adult diapers you purchase, are NOT deductible!) Are you prepared for your audit?Your IRS agent sure … [Read more...]