Taxwise Strategies

We've put together a library of articles with helpful information on tax management strategies. Simply click on a topic.

United States Tax History

United States Tax History American tax law is a constantly changing landscape. The latest major piece of tax legislation is the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, by President Donald Trump. The 2017 law kept the...

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How Can I Upgrade My Insurance — Tax-Free?

  How Can I Upgrade My Insurance — Tax-Free? Responding to the changing needs of consumers, the life insurance industry has developed some alternatives that go much further in satisfying a variety of financial needs and objectives than...

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Is There Such a Thing as a Tax-Free Investment?

Is There Such a Thing as a Tax-Free Investment? The simple answer to this question is “yes.” There are two main types: (1) municipal bonds and municipal bond mutual funds and (2) tax-free money market funds. Municipal bonds are issued...

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How Can I Keep More of My Mutual Fund Profits?

Provisions in the tax code allow you to pay lower capital gains taxes on the sale of assets held more than one year. Short-term gains — those resulting from the sale of assets held for one year or less — are taxed as ordinary income at...

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What is the most tax-efficient way to take a distribution from a retirement plan?

What is the most tax-efficient way to take a distribution from a retirement plan? If you receive a distribution from a qualified retirement plan such as a 401(k), you need to consider whether to pay taxes now or to roll over the account to another...

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What Tax-Advantaged Alternatives Do I Have?

What Tax-Advantaged Alternatives Do I Have? A strong savings program is essential for any sound financial strategy. We take Benjamin Franklin’s saying to heart, “A penny saved is a penny earned,” and we save our spare cash in...

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What tax deductions are still available to me?

What tax deductions are still available to me? Tax reform measures are enacted frequently by Congress, which makes it hard for U.S. taxpayers to know which deductions are currently available to help lower their tax liability. Taxpayers may be able...

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How Can I Benefit from Tax-Advantaged Investments?

How Can I Benefit from Tax-Advantaged Investments? For many people, tax-advantaged investing is an excellent way to reduce their income tax liability. And while many of the traditional tax-advantaged strategies have been eliminated, there are still...

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What Is Tax Deferral?

What Is Tax Deferral? “Tax deferral” is a method of postponing the payment of income tax on currently earned investment income until the investor withdraws funds from the account. Tax deferral is encouraged by the government to...

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What Happens If I Withdraw Money from My Tax-Deferred Investments Before Age 59½?

What Happens If I Withdraw Money from My Tax-Deferred Investments Before Age 59½? Withdrawing taxable funds from a tax-deferred retirement account before age 59½ generally triggers a 10% federal income tax penalty, on top of any...

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When Must Taxes Be Paid on IRA and Employer-Sponsored Retirement Funds?

When Must Taxes Be Paid on IRA and Employer-Sponsored Retirement Funds? Traditional IRAs and most employer-sponsored retirement plans are tax-deferred accounts, which means they are typically funded with pre-tax or tax-deductible dollars. As a...

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What are the tax benefits of charitable trusts?

What are the tax benefits of charitable trusts? Americans give freely to support the causes they value, from churches, education, and the arts to medical research. Fortunately, current tax laws encourage and even reward philanthropy. Beyond the...

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What Is a Required Minimum Distribution?

What Is a Required Minimum Distribution? A required minimum distribution (RMD) is the annual amount that must be withdrawn from a traditional IRA or a qualified retirement plan (such as a 401(k), 403(b), and self-employed plans) after the account...

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What Is the Gift Tax?

What Is the Gift Tax? The federal gift tax applies to gifts of property or money while the donor is living. The federal estate tax, on the other hand, applies to property conveyed to others (with the exception of a spouse) after a person’s...

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What Is the Estate Tax?

What Is the Estate Tax? The estate tax is a tax on property that transfers to others upon your death. Estate taxes are assessed on the total value of your estate — your home, stocks, bonds, life insurance, and other assets of value —...

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What Is the Capital Gain Tax?

What Is the Capital Gain Tax? Capital gains are the profits realized from the sale of capital assets such as stocks, bonds, and property. The capital gains tax is triggered only when an asset is sold, not while the asset is held by an investor....

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This material is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.