Now that summer is coming to an end and students are headed back to school, it’s time to start thinking about year-end finances. Make a plan to finish these five items before mid-November. Reach out to our team with any questions or to make sure you’ve completed all that applies to you.
Doctors: 2022 Updates for Using the Backdoor Roth Conversion Strategy
We continue to stress to our doctors the importance of funding as much as possible into their tax-free accounts. Not only is this “tax insurance”, meaning you will not have to pay taxes on these accounts in the future, but it can also have a huge impact on how much money you will have in retirement. The amount of funds you have in tax-free investments can even make a difference on how soon you reach financial independence. The more funds doctors have in a tax-free account could mean retiring sooner, or, unfortunately, it could push out retirement for those doctors who have not planned ahead.
We could be looking at some changes to this strategy in 2022 due to some proposals on Congress’ docket. Here’s an overview of both current and possible changes to the backdoor Roth conversion strategy.
2017 vs. 2018 Federal Income Tax Brackets
Tax Tips for the Entrepreneurial Physician or Dentist
Side Gigs for Doctors
(2018) New Federal Tax Bill and Its Impact on Doctors
What the New Tax Proposal Could Mean for Doctors
How Smart Tax Strategies Can Save You Money, Now, and in the Future
When I first started financial planning, we all had one basic assumption - push taxes into the future. The general thought was our clients would be in a much lower tax bracket for taking distributions from their retirement plans. About 13 years ago, I had an "aha moment". What if that assumption was false?