![]() Ballot access requirements for political candidates in New Jersey.Campaign finance requirements for New Jersey ballot measures.Campaign finance requirements in New Jersey.Furthermore, establishing a well-thought-out plan for when it comes time to draw down from your assets for retirement income is vital. Proper diversification of your assets is regarded as the primary tool for reducing risk without sacrificing return potential. While none of us knows what the future holds, as with any form of planning, the more time you have to prepare, the more options you’ll have available to you. And since wash sale rules only apply to harvesting losses (not gains), you could then turn around and repurchase the same securities at a stepped-up cost basis to help reduce future recognized gains while still retaining the investment. While such sales would produce a taxable gain, it may be less than at some point in the future. If you anticipate potentially higher capital gains tax rates in the future, you may want to consider selling some of your highly appreciated securities prior to the expiration of the TCJA. By converting your traditional IRA to a Roth before 2026, you pay the income tax liability upfront (potentially at a lower tax rate) rather than at the time of distribution. Whereas required minimum distributions ( RMDs) from traditional IRAs start at age 72 (see note below), taxed as ordinary income and subject to a 10% penalty prior to age 59½, Roth IRAs have no RMDs, and all future growth and distributions are tax-free. ![]() Converting a traditional IRA to a Roth IRA. ![]() In light of this, you may wish to explore opportunities to accelerate income when and where possible over the next couple years to take advantage of the lower brackets, including: Since income tax brackets are also slated to revert back to pre-TCJA levels (e.g., the top tax bracket increasing to 39.6% from its current 37%), many wealthier taxpayers can expect a measurable increase in their effective tax rate. Income and capital gains tax considerations In addition, the death benefit paid out to your beneficiaries is income that’s also considered tax-free. Purchasing a survivorship policy owned by an ILIT is one of the most common ways to transfer wealth outside of your taxable estate.
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