As the year draws to a close, it’s time to start integrating tax-smart strategies into your financial plan for the upcoming tax season. Effective tax planning can help you minimize your tax burden, maximize your savings, and enhance financial success into 2025 and beyond.

Understanding New RMD Rules for Inherited Individual Retirement Accounts For many holders of traditional individual retirement accounts, minimum distributions (RMDs) are a familiar concept. They provide a way for the government to collect taxes on tax-deferred accounts, and investors who fail to make RMDs and pay taxes on them can face IRS penalties.

In the field of financial management, charitable giving is pivotal when it comes to the transfer of assets. It shows a commitment to social responsibility and is a strategic wealth management approach.  Understanding the nuances of incorporating charitable giving into your wealth transfer strategy is important. This may include understanding charitable gift annuities, navigating the rules of charitable contributions, and making informed decisions about your donations. 

Originally published here by Kiplinger.

Many people give donations at year-end to support their favorite charities–and to reap the tax benefits of doing so. But what many generous folks don’t realize is that, with some advance planning, there are efficiencies in charitable giving that can maximize both your gift and your tax deduction.

Adding a Roth account to your retirement plan can be a great money-saving strategy. The benefits of setting up a Roth IRA are well documented, but did you know that there are Roth versions of employer-sponsored 401(k), 403(b), and 457 retirement plans?

Starting in 2022, the various tables used to calculate required minimum distributions (RMDs) from retirement plans will be updated. To reflect longer life expectancies, these tables will be expanded to allow RMDs to be drawn out over a greater length of time.

Paying income taxes is something a lot of us never really stop to think about. While working, a certain amount gets taken out of each paycheck (called a “withholding”) to pay the taxes we expect to owe. These withholdings end up being enough to satisfy our income tax liability until tax season rolls around–at which time we either pay more in or get some money back when we file our tax returns.

Avoid costly tax pitfalls in retirement—learn 3 common mistakes that could shrink your savings and discover smart strategies to keep more of what you’ve earned.

On your wedding day, you took your partner’s hand and promised to be by their side every day for the rest of your lives. And so far, that may be exactly what you’ve done. But now, with retirement looming, you’re readier to take that leap than your spouse. So, what are you supposed to do?