Comments on: Double, Double, Toil and Trouble http://financialducksinarow.com/2195/double-double-toil-and-trouble/?utm_source=rss&utm_medium=rss&utm_campaign=double-double-toil-and-trouble Articles about retirement savings & income, investing, and income tax Fri, 03 Feb 2012 13:46:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: jblankenship http://financialducksinarow.com/2195/double-double-toil-and-trouble/#comment-720 jblankenship Mon, 08 Feb 2010 22:27:15 +0000 http://financialducksinarow.com/?p=2195#comment-720 Good points all around, Joe. Thanks for the reminders on how the gift exemption and Roth conversions could help to keep you out of such a situation altogether! jb Good points all around, Joe. Thanks for the reminders on how the gift exemption and Roth conversions could help to keep you out of such a situation altogether!

jb

]]> By: JoeTaxpayer http://financialducksinarow.com/2195/double-double-toil-and-trouble/#comment-719 JoeTaxpayer Mon, 08 Feb 2010 21:39:04 +0000 http://financialducksinarow.com/?p=2195#comment-719 IRD is good to know for an "after the fact" situation, but a bit of planning and all tax might be avoided. Dad (and Mom if they are both alive) can gift $13K each per recipient per year. 2 married adult children, and 4 grandkids, that 8 people, and 16x$13K that can be gifted. $208K in one year. Also, for retired folk, a careful plan of Roth conversions can help. Converting just enough each year to 'top off' the bracket but not go into the next. This both reduces the estate for potential tax issues at death, and also is a savings for the beneficiary who is likely working and in a higher bracket than the retired account owner. A great topic, too many people overlook. IRD is good to know for an “after the fact” situation, but a bit of planning and all tax might be avoided. Dad (and Mom if they are both alive) can gift $13K each per recipient per year. 2 married adult children, and 4 grandkids, that 8 people, and 16x$13K that can be gifted. $208K in one year.
Also, for retired folk, a careful plan of Roth conversions can help. Converting just enough each year to ‘top off’ the bracket but not go into the next. This both reduces the estate for potential tax issues at death, and also is a savings for the beneficiary who is likely working and in a higher bracket than the retired account owner.
A great topic, too many people overlook.

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