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Finding the right fit for your clients' assets: Tax Strategy Scan

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Are you holding your assets in the right types of accounts?
Asset location is key for retirement savers to optimize returns and tax savings, according to Morningstar. For example, bonds and other investments with high tax costs should be held in 401(k), IRAs and other tax-sheltered savings accounts. Clients should hold securities that give limited earnings and capital gains distributions in their taxable brokerage account. -- Morningstar

Which IRA offers the best tax benefits?
Traditional and Roth IRAs offer unique tax benefits for retirement investors, according to Motley Fool. While both accounts offer tax-deferred growth on savings, contributions to a traditional IRA are pretax while a Roth IRA is funded with after-tax dollars. Clients owe ordinary tax income on traditional IRA withdrawals, while money drawn from a Roth IRA is exempt from taxes. Clients are advised to weigh their options before choosing which one to use to save for retirement.

Taxes are one of life’s sure things, but clients can still make changes after the filing deadline. Here’s how.
July 12

How Trump's proposals may affect every income tax bracket
Many taxpayers stand to gain from President Donald Trump's tax plan, which includes a proposal to raise the standard tax deduction and the repeal of the alternative minimum tax, according to CNBC. However, Trump's other tax proposals could hurt many taxpayers as well. For example, the president wants to repeal personal exemptions for taxpayers and their dependents, a move that could mean bigger tax liability for single parents with dependent children and married households with three or more dependents. -- CNBC

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