Proper planning can help you avoid costly errors and big tax hits when transferring a 401(k) to an IRA https://t.co/SouLCACxVz ...

The final fiscal quarter provides an opportunity to reflect on the financial year that you’re leaving behind while planning for the one ahead, regardless of your age and generation. Read More: I’m a Retired Boomer: 3 Things I Wish I Had Done Differently To Better Prepare For Retirement Longevity Find Out: 5 Clever Ways Retirees Are Earning Up To $1K Per Month From Home However, it’s especially crucial for baby boomers to use the waning months of 2025 to set themselves up for success in the new year. The ...

Cleveland, Nov. 12, 2025 (GLOBE NEWSWIRE) -- CBIZ, Inc., a leading national professional services advisor, today announced the release of its 2026 Tax Planning Guide, a comprehensive resource designed to help businesses and individuals navigate the sweeping changes introduced by the One Big Beautiful Bill Act (OBBBA) and plan for 2026 with confidence. The guide breaks down how the OBBBA is reshaping the tax landscape and offers practical strategies for preparing for 2026 and beyond. It includes impactful i ...

Core Insights - A woman named Sarah discovered her former employee benefits account is now worth approximately $18 million, potentially linked to a tech giant like Nvidia [2][3] - Financial expert Dave Ramsey advises her to diversify her investments and be cautious about tax implications from selling shares [3][4] Investment Strategy - Ramsey emphasizes the importance of not having a significant portion of net worth tied to a single stock, labeling it as "scary and unwise" [3][5] - He recommends consulting with a tax planner or investment adviser to minimize tax liabilities while diversifying her portfolio [5][6] Tax Considerations - The maximum federal capital gains tax rate for high earners is 20%, with an additional 7% state tax applicable in Washington State [4] - Selling even a small fraction of the account could push Sarah into the highest tax bracket, necessitating careful planning [3][4]

Mark Cuban shocked the internet when he revealed that he paid $275.9 million in taxes last year. Instead of hunting for loopholes, the billionaire investor and former Dallas Mavericks owner said on BlueSky he was proud to contribute, calling taxes part of his duty to the country. While your bill won’t come close to nine figures, his approach offers a smart blueprint for everyday taxpayers. Keep reading for more details on Cuban’s tax bill — plus five tips to keep yours much lower. Trending Now: Mark Cuba ...

Core Insights - The article emphasizes the importance of actively managing finances in retirement despite having more leisure time, highlighting the need for strategic adjustments to protect savings against rising costs and changing tax rules [1] Group 1: Medicare Optimization - Retirees should optimize their Medicare plans during the Fall Open Enrollment period, which runs from October 15 to December 7, by comparing current plan costs, networks, and drug coverage against alternatives [3][4] - The standard premium for Part B has increased to $185 per month, while Part D caps annual out-of-pocket drug costs at $2,000 [3] Group 2: Tax Planning - A smart tax plan for 2025 should include deliberate planning of tax brackets, considering partial Roth conversions, and a tax-efficient withdrawal sequence to manage lifetime taxes and IRMAA [5] - Some provisions from the Tax Cuts and Jobs Act will sunset after 2025, and changes from the One Big Beautiful Bill Act may also impact deductions and tax brackets [5] Group 3: Required Minimum Distributions (RMDs) - Required minimum distributions begin at age 73, and it is crucial for those who turned 73 this year to take the correct amount to avoid penalties [7] - Coordinating withdrawals with a tax plan and utilizing IRA withholding can help manage taxes effectively [7] Group 4: Cash Management and Portfolio Rebalancing - Retirees should maintain one to two years of planned withdrawals in cash-like reserves to avoid forced selling during market downturns [9] - Rebalancing the investment portfolio to align with target risk levels is essential as investing risks change in retirement [9]

Core Insights - Retirement income taxation in Arizona varies based on income sources and residency, with specific exemptions for Social Security and military retirement pay [2][3] Arizona State Taxes - Arizona has a state income tax with a flat rate of 2.5%, but Social Security benefits and military retirement pay are exempt from this tax [6] - Private pensions, IRA and 401(k) withdrawals, and investment income are subject to state income tax, with retirees allowed to subtract up to $2,500 annually from certain pensions [6] - The state has a sales tax of 5.6%, with an average combined sales tax rate of 8.38%, which can be as high as 12% in some counties [6] - Property tax for homeowners is set at 0.45%, ranking as the fourth lowest in the U.S., and there is no state or inheritance tax in Arizona [6] Tax Breaks for Seniors - Seniors aged 65 and above can benefit from the Senior Property Valuation Protection Option, which can lower their overall tax bill by pausing the taxable value of their primary residence for up to three years [3][4] - To qualify for this option, retirees must have an income of no more than $45,264 (or $56,580 for multiple homeowners) averaged over the last three years [4] - Seniors in Maricopa County may also access the Elderly Assistance Fund, which reduces primary school district taxes [4] Property Tax Deferral - Arizona allows homeowners aged 70 and above to defer property tax payments for up to a year, provided their total annual taxable income is $10,000 or less [5]

Core Insights - The article discusses the financial decision-making process regarding the withdrawal of $200,000 from an inherited IRA Beneficiary Distribution Account (BDA) and the implications of tax rates on this decision [2][3]. Evaluation of Options - The article suggests that withdrawing the entire amount now may seem beneficial due to the potential for compound growth under long-term capital gains tax rates, but this does not apply if the individual remains in the same tax bracket [3]. - Keeping the money invested in the IRA could reduce tax drag and potentially yield a higher after-tax value at the end of 10 years [4]. Measuring Outcomes - A comparison of the after-tax value of the $200,000 is necessary to evaluate the two withdrawal approaches: withdrawing all now versus at the end of 10 years [5]. - If the individual withdraws $200,000 and pays 35% in taxes, only $130,000 would be available for reinvestment, while leaving the full amount in the inherited IRA allows for complete investment [7]. - The article proposes using a projected annual return of 10% for growth calculations over the next decade [7].

Core Insights - The article emphasizes the importance of protecting purchasing power in retirement to maintain a comfortable lifestyle amidst inflation [2][3]. Group 1: Tax Planning Strategies - Retirees should plan wisely for taxes by considering all income sources, including drawing from Roth IRAs or taxable accounts during low-income years to keep taxable income lower [4]. - The passage of the "Big Beautiful Bill" introduces a new senior deduction, which may allow retirees with modest incomes to owe little to no federal tax [5]. - Higher-income retirees need to engage in smart tax planning, utilizing strategies like capital gains harvesting and optimizing withdrawal timing to maximize income and reduce tax exposure [6]. Group 2: Income Stability - Modern retirees face longer lifespans and unpredictable markets, necessitating financial strategies that ensure long-term income stability rather than merely preserving savings [8].

Core Insights - The 2026 income tax brackets have been adjusted, providing taxpayers with more room in their respective brackets due to inflation adjustments [2][4][21] - The changes in tax brackets will result in lower taxes for many individuals if their income remains stable, with potential savings in the hundreds of dollars [4][6] - Strategic tax planning is essential for maximizing benefits from the updated brackets, particularly regarding Roth IRA conversions and capital gains [8][10][14] Tax Bracket Adjustments - Married couples filing jointly can earn up to $100,800 in the 12% bracket, an increase of $3,850 from the previous year [2] - Higher-earning couples in the 22% bracket can report income up to $211,400, up from $206,700 in 2025 [2] - The seven tax brackets range from 10% to 37%, with specific income thresholds for each bracket [5][21] Tax Planning Strategies - Taxpayers should consider both current and future tax implications when making financial decisions [6] - Knowing the tax brackets in advance aids in personal finance and tax-saving decisions, including Roth IRA conversions [7][8] - Filling up lower tax brackets without exceeding them is a recommended strategy to minimize tax liabilities [12][13] Roth IRA Conversions - The updated brackets allow for more income to be converted to Roth IRAs without moving into a higher tax bracket [9][10] - A couple in the 22% bracket in 2026 will have nearly $4,000 more room at the top of their bracket for Roth conversions [9] - Roth conversions are particularly beneficial for retirees with high traditional IRA balances, allowing for strategic tax management [11] Capital Gains Tax - The income threshold for the 0% capital gains tax rate will also increase, allowing more taxpayers to benefit from tax-free capital gains [14][15] - For 2026, the 0% capital gains rate applies to single filers with income up to $49,450 and joint filers with incomes up to $98,900 [14][16] - Taxpayers can realize significant capital gains without incurring federal taxes by managing their taxable income effectively [16][17] Withdrawal Strategies - Taxpayers close to crossing into a higher bracket should prioritize withdrawals from non-taxable accounts to minimize tax impacts [18][19] - Withdrawals from traditional IRAs and 401(k)s should be considered last, as they are treated as taxable income [19][20]