Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
A retiree's guide to selling investments When selling investments, retirees should tap into their Roth accounts last to allow their assets more time to grow tax-free, according to this Motley Fool article. However, if selling the investments they need for their retirement income would cause an “excessive tax bill,” they may want to consider taking a portion of the funds from their Roth account in order to keep tax expenses at an affordable level. Another caveat for clients to consider is that they’ll have to start taking required minimum distributions from tax deferred accounts at age 70 1/2. So at that point, they should turn to other accounts only if they need more money than the RMD calls for.
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