Year-end money tips from Charles Schwab: Take your required minimum distribution (RMD). Once you reach age 70½, the IRS requires you to start taking money out of your Traditional, Rollover, SEP, or SIMPLE IRA(s). Use Schwabs RMD Calculator at schwab to estimate how much youll need to withdraw. Consider delaying Social Security benefits. You may increase your Social Security benefits if you delay or suspend them. For more information, read When Should You Take Social Security? at ssa.gov. Prepare for new tax-reporting changes. Review legislation related to cost basis reporting that could affect your taxes. To find out what you should know before you trade in 2014, visit schwab/costbasis. Convert to a Roth IRA. Compared to a Traditional IRA, contributions and earnings in a Roth IRA can grow tax-free, which could be a tax-smart move in the long run. See if converting to a Roth IRA is right for you. Turn losses into potential tax savings. If you decide to sell losing assets such as under-performing stocks before 2014, you may be able to use those capital losses to offset taxable capital gains. For more details, read Schwabs Get a Tax Break by Harvesting Losses. Explore the tax advantages of a 529 college savings account. Potential tax benefits await you when you open or contribute to a 529 college savings plan for a child or grandchild before 2014. You can open a Schwab or other brokerage 529 Plan now. Rebalance your investment portfolio for the New Year. Market swings cause investment allocations to shift. To keep your portfolio in good health, use the Schwab Portfolio Checkup® tool, schedule a no-cost consultation at 800-790-3810, or call your Financial Consultant to make sure your investments are still supporting your plan. Donate to a charitable organization before Jan. 1, 2014. If you make a charitable donation before Dec. 31, you may be able to write it off on your 2013 taxes. A donor-advised fund such as Schwab Charitable™ can give you even more benefits.
Posted on: Tue, 03 Dec 2013 22:05:11 +0000
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