Are you moving money out of a 401(k) fund?
If the answer is “yes,” you may be able to knock thousands, or even tens of thousands of dollars off your tax bill!
How? By using a smart roll-forward, roll-backward technique we call the “Double-Win” strategy.
In a recent issue of the Tax Reduction Letter we outlined a winning way to slash taxes on your retirement funds by rolling over your traditional IRAs into Roth IRAs.
The good news is, you can also use this tax-cutting approach to save big money when you roll over your 401(k). Want to learn how? Don’t miss my new article titled Tax Tips: Slash Taxes When Rolling Over Your 401(k) Funds: Use This IRA Double-Win Strategy.
Three ways our fact-filled article can help you:
- We’ll show you how to “recharacterize” your contribution. Want to convert some of your investments from your 401(k) to a Roth IRA without Uncle Sam taking a huge tax bite? You can recharacterize the contribution by transferring it to a traditional IRA, but not back to the 401(k). We’ll give you all the details when you read the full article.
- We’ll warn about a trap to avoid. The strategy we’re suggesting does not work for in-plan Roth rollovers within your 401(k). Before you put the “Double-Win” strategy to work, be sure you read the full article.
- We’ll tell you the right way to transfer money. To properly recharacterize your contributions, you need to transfer the money to a traditional IRA account using a trustee-to-trustee transfer. You’ll get all the facts when you read the full article.