Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Lean income years provide an opportunity to take advantage of the 0% capital gains rate, opportunties including cashiin old Treasury Savings Bonds and run pre-payment plans like a 529 for short term savings. Read the rest of seven tax tips forlow income years . -- Time Money
Many clients who receive restricted stock units do not understand that these assets are taxed differently than stock options, according to CNBC. Restricted stock unitss are taxed as soon as they vest, yet a huge number of RSU recipients cling to these stocks even after they vest, falling into the trap of concentration risk. A good way to avoid this is to cash the RSUs out and use the proceeds to diversify the clients investment portfolio. -- CNBC
Certain Roth IRA distributions may be subject to tax if the distributions are received before clients reach 59 1/2, according to MarketWatch. Rule revisionse to make Roth IRAs taxable may be proposed, but it is unlikely that lawmakers will go along, since changes could lead to a decrease in number of conversions and the amount of tax revenue. -- MarketWatch
Clients who utilize investment supermarkets like Schwab's can build several portfolios using only a single platform to conduct all their trades, according to Morningstar. Using a so-called bucket strategy, clients can create tax-efficient portfolios strategy. This article provides several examples. -- Morningstar
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