ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently leads Pure Financial Advisors along with Michael Fenison and Joe Anderson. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. As of [...]

Andi Last
ABOUT Andi

Andi Last brings 26 years of broadcasting, media and marketing experience to Pure Financial Advisors, where she produces the Your Money, Your Wealth® podcast and radio show and creates educational video content. Prior to joining Pure, Andi was Media Operations Manager for a San Diego-based financial services firm with a long-running, nationally syndicated financial advice [...]

What might a Joe Biden presidency mean for your taxes? Learn about Biden’s proposed changes to the current tax laws, and how the provisions from Donald Trump’s CARES Act Coronavirus stimulus package and the SECURE Act affect your taxes and retirement planning. On August 26, 2020, Joe Anderson, CFP®, Big Al Clopine, CPA, and YMYW podcast producer Andi Last presented this live webinar, especially for the Your Money, Your Wealth® audience. After the presentation, we opened it up for a live question and answer session with Joe and Big Al answering your retirement and tax planning questions.

You still have time to sign up for a free Tax Reduction Analysis with a CERTIFIED FINANCIAL PLANNER™ before the end of 2020, but don’t wait until the calendar is full! Schedule now:

 

00:00 – Intro

4:56 – Why the timing might be right for tax changes: Historical highest marginal income tax rates in the US

7:00 – the US National Debt in real time

11:46 – Joe Biden’s Tax Proposals: changes to income tax rates, capital gains tax, step-up in basis, Social Security payroll tax, corporate income tax rates

18:48 – The CARES Act: Coronavirus Related Distributions (CRDs), Required Minimum Distributions (RMDs)

24:09 – The SECURE Act: Stretch IRA & RMDs

QUESTIONS:

Does the Coronavirus Related Distribution (CRD) withdrawal count for the pre-tax IRA?

Can you take advantage of the CRD if you are age 60?

If I took $100k out of my IRA under the CRD, is there any way to put this money back into a ROTH IRA without it counting as conversion and bypass the taxes on this $100k?

Can we convert RMD to Roth IRA if we are over 70 1/2?

Can I convert my Solo Roth 401K to Roth IRA and Employer Portion of Solo 401K to Roth IRA (Paying Taxes) next year after contribution year?

Does the state of California tax retirement income (IRA) differently than W2 or 1099 income?

Should I rollover my pension/annuity amount to a rollover IRA? Annuities returns are minimal compared to equities. Confused on how much I can convert to a Roth IRA from a 401(K) plan on a yearly basis tax efficiently. My gross income is $90,000.

Could I take a CRD from the Roth portion of my 401k and put it into my self-directed Roth IRA?

When would Joe Biden’s higher tax rates take effect?

When do Donald Trump’s tax cuts expire?

I hear on your podcast that someone could use the strategy to harvest capital gain when income is lower. Does this apply to any amount of capital gain? For example, an individual taxpayer has 30k income this year, if s/he harvest 10k capital gain then pay 0% for the capital gain. What if s/he harvest 100k capital gain, then that brings the total income to 130k. Would they still be paying 0% capital gain?

I am retired. For my income from investments, do I need to keep them below the total below $240,000? This would be the total of my sales, capital gains, interest/short term… Roth Conversion?

Does PURE use sophisticated software tools to enter all the specifics to optimize tax consequences and Roth conversion strategies based on multiple scenarios and assumptions?

If my married tax rate is 32%, and I am at the top of my tax bracket then it looks like converting money out of an IRA into a Roth does not make sense?

Can you tax loss harvest for your stocks and apply against gains on converting an IRA to a Roth?

I’m 70 1/2. Should I take my RMD from my Thrift Savings Plan now and put it in Roth TSP or should I wait until 72?

What are RMD requirements for beneficiary Roth IRA?

With estate tax changes potentially coming (certainly a cut in the exemption), but maybe even more punishing measures such as eliminating stepped-up basis, are there strategies such as ILIT or other to protect Uncle Sam from smacking down our beneficiaries?

I am 60 and married. How much can I contribute and/or move to a Roth? I did have earned income earlier this year before retiring in July of this year.

In 2002 I put $2000 in a Small Cap Mutual Fund. By 2007 it had grown to $11,000. The company was bought and the fund name has changed twice. On my statements, I noticed it indicated the basis was $11,000, then $13,000 after the second name change. The fund subsequently has fallen to $9000. The fund basis is still listed as around $13,000 give or take. When I sell the fund, do I have to use $2000 as a basis or do I use $13,000 as a basis since this is what I believe that’s the basis the company reports to the IRS?

Can you help with how Roth conversion is taxed if someone lives in 2 states with different state tax rates, eg, Florida and another state?

Free Tax Reduction Analysis

 

 

IMPORTANT DISCLOSURES:

Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor.

Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.