Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Use your client's tax return for more than paying taxes: The 1040 form can spark a broad tax planning discussion with clients, according to CNBC. A line-by-line review, for example, can bring attention to key decisions regarding estate taxes, making the most of workplace benefits and maximizing deductions. – CNBC
Transform your parents' medical bills into tax-free retirement savings: These tips using medical expenses may help clients looking after aging parents cut taxes for their elders, according to MarketWatch. The IRS is allowing taxpayers aged 65 and older to claim deductions in 2016 for qualified medical expenses when the costs exceed 7.5 percent of their adjusted gross income for the year. The percentage increases to 10 percent next year. – MarketWatch
Name trust as Roth IRA beneficiary: Forget the kids and grandkids as beneficiaries when clients convert a Roth IRA. Designate a trust instead, according to Business Management Daily. By naming a trust as beneficiary, clients can stretch payments longer than they would with a traditional IRA. Distributions from a Roth to a trust also are tax-free. -- Business Management Daily
Taxes: 5 facts every Baby Boomer should know: Baby Boomers, who are approaching retirement or have already entered it, may want to look into these tax-saving strategies, according to the Motley Fool. These approaches focus on boosting contributions to 401(k) and other retirement accounts, when to take distributions and maximizing Social Security benefits.
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