The Navigoe Blog

Navigoe Third Quarter Newsletter

The Navigoe Third Quarter Newsletter is out!

Here is a summary of some of the articles in our latest newsletter.

Eight Compelling Tax Reasons for Roth IRA Conversion

Deciding whether or not you should convert your traditional IRA (or part of it) to a Roth IRA is an important decision with significant tax and retirement planning implications. This article offers eight reasons in favor of Roth IRA conversions:

  1. Tax bracket management
  2. Tax-free payouts
  3. Minimizing net investment income tax
  4. No required distributions
  5. Flexibility during retirement
  6. Taking advantage of ordering rules and distributions
  7. Protections against tax increases
  8. Estate tax considerations

Compare Minor’s Account To 529 Plan

The 529 plan has become the most popular way that parents (and sometimes grandparents) save money for their kids’ college expenses. Prior to the introduction of the 529 plan, Uniform Gifts (Transfers) to Minors Act accounts, known as UGMA or UTMA were the most popular savings tool for kids. The main considerations in comparing the UGMA/UTMA and the 529 plan are:

  • Control of the money
  • Taxation of earnings
  • Availability of investment options
  • Expenses that the funds may be used for
  • Financial aid considerations

Here’s What You Can’t Do In An IRA

Did you know that the IRS prohibits certain transactions? What can’t you do with your IRA? You are prohibited from:

  • Borrowing money from it
  • Selling property to it
  • Using it as security for a loan
  • Buying property for personal use with IRA funds

Our newsletter is mailed to clients and others who have asked to be included in our mailing list. If you would like to be added to our mailing list, please contact our office at (310) 697-0400.

You can access this quarter’s complete newsletter here: Navigoe_3Q15