Tax Strategy Scan: A Foolproof Withdrawal Plan

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

Citi: Taxable munis are more attractive than corporates: Strategists at Citi Research found taxable municipal bonds more attractive than corporate bonds, according to Barron's. For example, the year-to-date total return for long-dated taxable munis known as Build America Bonds was 13.8 percent, outpacing the returns of other classes of municipals. Taxable munis, with a year-to-date return of 9.7 percent, have also outperformed tax-exempt indices. -- Barron's

How to create a foolproof withdrawal plan for retirement assets: Knowing the difference between tax-advantaged and taxable accounts can go a long way in making the most of retirement assets, according to U.S. News & World Report. Withdrawing funds from these accounts without careful planning could lead to a bigger tax liability on retirement income. -- U.S. News and World Report

How a Roth IRA conversion can save your savings: Clients may be better off converting their traditional IRA now to play later, according to The Street. RMDs from these accounts are mandatory when people reach 70 1/2. To minimize the tax bill on RMDs, clients should consider transferring a portion of their traditional IRA or 401(k) assets to a Roth account, which offers tax-exempt withdrawals in retirement. – The Street