Tax planning

How Roth conversions can reduce taxes for inherited IRAs

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Only 41% of investors with more than $1 million have a plan for passing on their wealth to future generations, UBS says. kate_sept2004 via Getty Images As retirees consider their legacy, a popular income tax-saving strategy has become more common, experts say. The strategy, known as a Roth individual retirement account conversion, transfers pretax or nondeductible … Read more

Supreme Court case on ‘income’ could have major implications for taxpayers

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People exit the Supreme Court building in Washington, D.C. on Tuesday, June 27, 2023. Minh Connors | The Washington Post | Getty Images The Supreme Court is set to hear oral arguments Tuesday on a case that could affect broad swaths of the U.S. tax code and federal revenue. The closely watched case, Moore v. … Read more

Here’s where to invest your cash to save on taxes in 2024

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Eric Audras | PhotoAlto Agency RF Collections | Getty Images If you’ve poured cash into money market mutual funds, you could see a higher 2023 tax bill in April. But other investments could reduce your 2024 taxes, experts say. Investors and institutions have funneled cash into money market funds amid rising interest rates, and balances … Read more

Money market funds may deliver a surprise tax bill amid higher yields

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If you funneled cash into money market mutual funds in 2023 amid rising interest rates, you may have a surprise tax bill in April, experts say. Investors and institutions have piled $5.84 trillion into money market mutual funds, as of Nov. 29, according to the Investment Company Institute, and many funds are paying well over … Read more