[1]A recent article from CNBC [2] outlined several ways taxpayers can improve retirement planning under new the tax laws. Here’s an overview:
- Move to a low-tax state. New caps on state and local tax deductions make retirement in high-tax, blue states a little less attractive now.
- Convert your traditional IRA to a Roth IRA. Roth IRAs provide the ultimate benefit in retirement — tax-free income. You can’t deduct your contributions to a Roth IRA, but the investment returns in the account are tax-free and so are account withdrawals (optional-not required) as long as you make them after age 59½.
- Give to charity in a smart way. The deduction for charitable donations was preserved in the tax bill, but with the standard deduction raised to $24,000 for a married couple, you’ll have to give a lot to warrant itemizing deductions.
- Consult with an expert.
At ShindelRock, we can provide you with insight and tax planning advice, which can translate into more retirement savings. Contact a ShindelRock tax professional [3] to learn more.