For many investors, Roth conversions are one of the best tools for managing long-term taxes. Moving money from a pre-tax IRA into a Roth IRA can reduce future required minimum distributions (RMDs), create more flexibility in retirement, and allow for tax-free growth for life. 

But there’s a hidden trap that catches many people off guard, and it’s usually caught too late. When you factor in lost deductions or credits and other taxable assets, the effective tax rate on a Roth conversion can be far higher than the bracket you think you’re paying…

I recently met with a couple whose net worth was more than 75% tied up in a single stock. They both were employees of the same company and had received stock options as part of their compensation. The stock price had gone up substantially in a few short years, and they had never sold a single share.

While it’s a good problem to have, they were very concerned about what to do now…

A 1099 form reports income from sources such as dividends, interest, and capital gains. Brokerage firms provide these documents based on the information they receive from mutual funds, ETFs, and other investment vehicles.

As tax season approaches, many investors receive their 1099 forms early in the year and feel the urge to file as soon as possible. However, financial institutions often issue corrected versions. If you receive one of these corrected 1099s and have already filed, an amendment to your tax return may be needed…

When it comes to taxes, underpaying the IRS can be costly. In recent years, the cost of underpaying has gone up substantially.

One primary reason underpaying taxes is more expensive is the rising interest rates on unpaid taxes. The IRS charges interest on any tax owed, just like a loan from a bank. These rates are adjusted quarterly and are tied to current interest rates.

As with other forms of debt, this rate has also increased. As of January 2025, the rate is 7%, up from 3% a few years ago…

One question I hear from many pre-retirees planning to move after retirement is what the taxes will be when they sell their home. Many have lived in the home for 10, 20, or even 30+ years and are sitting on a substantial gain. Fortunately, the answer is often that there will be little to no taxes due to the primary home tax exclusion.

This provision in the U.S. tax code allows homeowners to exclude a portion of the capital gains from the sale of their primary residence from their taxable income…