The estate tax wasn’t repealed, but the federal estate-tax exemption nearly doubles! For couples, this will mean that $22.4 million can pass tax-free to heirs.
The rule that steps up the tax basis of inherited assets remains under the new law. As in the past, consider passing capital assets such as appreciated stock, mutual fund shares and real estate to heirs. The heirs’ basis will be the value of the assets on the date you die, making all prior appreciation tax-free.
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2 thoughts on “7 Clever Tax Strategies Every Retiree Should Know”
I’m 72 1/2 I cant retire because of credit card debt I hav good credit but 33k in credit card total What do you suggest? I have never been late on my payments
I have concerns with the advice given.
1) According to IRS Publication 590B, you must be 70 1/2 to make such a contribution, not 70. Also, the limit is $100,000 not 4100,000, as your article suggests.
2) The advice to rollover to a Roth as soon as possible may cost tax money. Had one done it in 2017 the rates would have been higher than they will be in 2018. The issue of one’s personal marginal tax rate is not even mentioned. If one is in a 25% marginal tax bracket this year because of unusually high income, but expects to be in a 15% marginal tax bracket next year, your advice to do it as soon as possible will cost the tax payer money.