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The RMD delay with fewer consequences: Tax Strategy Scan

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

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Strategies that can avoid a 50% hit to your client's retirement savings
RMDs can be a drag for the unprepared client and can cost them as much as a 50% penalty if they fail to take them. Advisers can point out several options that can provide clients some tax advantages, offer a lifetime stream of income or help them leave a legacy to future generations, according to CNBC. Here's how longevity insurance, munis, 529 contributions and charitable giving can help

How a Roth IRA conversion can help you pass on more wealth
A recent study shows that Roth IRA conversions can help clients leave a larger legacy to their heirs, according to Money. But determining how beneficiaries come out ahead, when they inherit money in tax-deferred or tax-free accounts, depends on a number of factors. This includes the client's marginal tax rate when converting savings to a Roth, their heirs' marginal tax rate when they withdraw the funds, how taxes are paid on the conversion and how long the money remains in the Roth. -- Money

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

Find the right investments for your client's retirement portfolio

Here's a checklist from Morningstar that advisers can use to help clients keep their retirement plans on track. A client's knowledge level, desire to be hands-on, tax status, and tolerance for short-term volatility can help identify the right investments. -- Morningstar

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