In this situation, one idea is to open a UTMA for your kid (your kid is the beneficiary today and becomes the owner when they turn 21). Why is this? UTMA accounts are taxed favorably…
Net Unrealized Appreciation!
Who doesn’t like to save on taxes? Taking an in-kind distribution of public company stock from your 401k may result in more favorable tax treatment than taking the distribution in cash.
Trick for Boosting Your Roth Contributions
If business titan Peter Thiel’s $5 billion tax-free individual retirement account has you jealous, here’s a way to build a pot of tax-free retirement savings without paying much in taxes: A mega-backdoor Roth conversion.