Did you know there’s a way to get up to $56,000 into your Roth IRA every year even though the contribution limit is $6,000 per year? Dubbed the “Mega Backdoor Roth,” this strategy allows taxpayers to increase their annual contributions into their Roth IRAs by as much as $56,000 (for 2019).
Alright, lend me your ears (or eyes, really) for this one. I’m going to dive into everyone favorite subject. That topic that makes everyone salivate and jump for joy and sit up straight in their chairs eager for what’s to come… taxes. Ha! I know, I know, but seriously, some of this stuff is super interesting. As a business owner, wouldn’t it be great to pay less in taxes, to keep more of your profit, or even just maximize the benefits that you deserve? I think so, so bear with me.
Tax season is quickly approaching so I thought it would be a good time to address some of the questions I’ve gotten over the past few months about this complicated issue. I also wanted to share some of the tax mistakes that can be easily made if you’re just trying to reduce your tax bill as much as possible. There is a significant portion of people who believe that there are tips and tricks to paying less in taxes by filing differently, when in reality it is more about living your life differently. So, if you’re looking to reduce your tax bill at the end of the year, these are avenues you should avoid.
Last month, I spoke with CNN about some pitfalls that should be avoided when using Donor Advised Funds. It was timely, because as the end of the year approaches, many taxpayers are looking for ways to be less of a taxpayer, and Donor Advised Funds are sometimes a great way to do just that. How do taxes relate to Donor Advised Funds? What even IS a Donor Advised Fund, for that matter?
It’s tax season and everyone’s thinking of everything they need to get ready for their accountant. I want to help you with an easy system to remember all the things you need to pull together. Here’s an acronym to walk you through the list!
The University of Denver invited a few of us Colorado Financial Planning Association members to speak on a panel. We shared our career journeys and information about our Financial Planning profession to students. The students asked impressive questions.
A student asked, “which part of personal finance do we have to know in order to pass the CERTIFIED FINANCIAL PLANNER™ exam?”
I attempted an answer by saying, “We study and then are tested on budgeting, retirement planning, education planning, debt management, investments, estate planning, and insurance.”
My colleague next to me politely added a topic that I missed: “taxes.”
Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.