Tag: Tax Planning
Avoid CPA Mistakes: Why you Should Check your Tax Return (Ep. 23)

Avoid CPA Mistakes: Why you Should Check your Tax Return (Ep. 23)

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Avoid costly CPA mistakes on your current or next tax return!

Today on Red Carpet Retirement, Adam talks about common but unintended mistakes CPAs make. Our discussion isn’t about pointing fingers but rather about uncovering common oversights in the filing process, how they happen, and, most importantly, how you can avoid being caught by surprise with unnecessary tax hits.

Adam’s Key Takeaways: 

  • Ensure all 1099 forms, especially revisions, are communicated to your CPA to avoid overpayment
  • Be aware of Roth conversion reporting and ensure it’s reflected accurately to prevent unjust taxation
  • Qualified Charitable Distributions (QCDs) can be mistaken for taxable income if not reported correctly
  • Reviewing your tax return, or having a financial advisor review it, is crucial for catching and correcting any overlooked errors
  • And more

Make sure your path to a seamless retirement isn’t derailed by avoidable tax mishaps. Stay tuned for our next episode where Adam discusses some of the opportunities missed by CPAs.

Resources:

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How To Maximize Your Retirement Savings Using The Mega-Backdoor Roth Strategy (Ep. 18)

How To Maximize Your Retirement Savings Using The Mega-Backdoor Roth Strategy (Ep. 18)

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Are you looking for ways to maximize your tax-advantaged retirement savings bucket? (In other words, a savings bucket where both growth and withdrawals are tax-free!)

A mega backdoor Roth 401(k) might be what you need.

This week, Adam Scott, CFP®, delves into the ins and outs of a mega-backdoor Roth 401(k), a financial maneuver that can potentially help you supercharge your retirement savings. You will also learn how an IRA is different from a 401(k) account, and ways to optimize your retirement income strategy.

Adam discusses: 

  • Traditional vs. Roth accounts — what might be more suitable for your situation?
  • A brief overview of 2024 contribution limits
  • How to implement the mega backdoor Roth 401(k) strategy
  • Benefits for high-income individuals, business owners, and those who’ve had a huge cash inflow (e.g., inheritance or selling a house)
  • Potential “landmines” to look out for while implementing this strategy
  • And more

Resources:

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Use Roth Conversions to Reduce your Lifetime Taxes: Turning Financial Lemons into Lemonade (Ep. 17)

Use Roth Conversions to Reduce your Lifetime Taxes: Turning Financial Lemons into Lemonade (Ep. 17)

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There are many benefits to  Roth conversions. But beware! Don’t step on a land mine when implementing that can blow your finances up! 

In this episode, Adam introduces his new co-host, Patrice Sikora, before discussing the benefits of Roth conversions. They highlight how these conversions can help reduce taxable income and potentially avoid higher taxes and higher Medicare premiums in retirement. Adam also discusses the impact of Roth conversions on financial aid for college and the importance of considering state taxes. The conversation concludes with an important reminder to not jump into Roth conversions alone and to avoid common mistakes by consulting a financial professional.

Adam discusses: 

  • An explanation of Roth conversions and their benefits
  • A story about a client who benefited from a Roth conversion during a low-income year
  • What the widow’s penalty is and how Roth conversions can help mitigate it
  • Why it’s important to plan carefully and consult a financial professional for Roth conversions
  • Benefits of doing Roth conversions during the “golden decade” of retirement (ages 60-70)
  • Potential impact of Roth conversions on financial aid for college
  • Why keeping state taxes in mind when planning Roth conversions is important
  • Tax arbitrage and the benefits of having different investment buckets (pre-tax IRAs and Roth IRAs) for managing taxes during retirement
  • And more

Resources:

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How To Choose A Great CPA (Ep. 11)

How To Choose A Great CPA (Ep. 11)

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Why did the CPA cross the road?

To get to the other side of the balance sheet.

In this episode, Adam sheds light on a crucial topic that concerns many individuals and businesses: how to find a GREAT CPA. Adam discusses the questions you should be asking and takes you through eight essential steps that will help you identify and select the right tax professional for you. 

Adam discusses: 

  • The 8 steps you should take to find a great CPA
  • Why it’s difficult to find a great CPA 
  • Why price shouldn’t be your first priority. 
  • How to judge their technical expertise
  • What credentials to look for in a good CPA
  • Why you should know which of the 4 different levels of philosophy your CPA falls under
  • The importance of asking your CPA about their contingency plan
  • And more

Resources:

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The Top 10 Sexiest Benefits Of The Secure Act 2.0 (Ep. 9)

The Top 10 Sexiest Benefits Of The Secure Act 2.0 (Ep. 9)

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Spice up your retirement planning with the Secure Act 2.0’s hottest benefit strategies.

Retirement planning may not sound like the sexiest topic, but the Secure Act 2.0 is changing that. In this episode, Adam discusses several benefit strategies that employers, retirees, pre-retirees, and even younger employees can take advantage of, and they’re anything but boring.

Adam discusses: 

  • The benefit strategies that retirees and pre-retirees can take advantage of
  • How business owners can take advantage of the secure act 2.0
  • What the benefits are for employees of all ages, not just pre-retirement employees
  • The benefits of 529 plans
  • And more

Resources:

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Top 10 Year-End Tax Tips (Ep. 5)

Top 10 Year-End Tax Tips (Ep. 5)

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The end of the tax year is rapidly approaching, and we have 10 tips to help you minimize your taxes.

In this episode, Adam shares his Top 10 year-end tax tips as the end of 2022 nears. He talks about Roth conversions, why and when it’s a great strategy to reduce taxes, and how it works. Adding to Roth conversions, Adam shares a few stories about putting Roth conversions into practice and finishes with a speedy roundup of nine other great year-end tax strategies.

Adam discusses: 

  • What a Roth conversion is
  • Why a Roth conversion is a great tax-saving strategy and how it works
  • Using Roth conversions can go wrong if you do not know what you are doing, as described in a few examples
  • And more

Resources:

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