All articles tagged with #tax implications
The article discusses key considerations for selling silver, including where to sell, how to verify authenticity, the value of collectible items beyond melt value, the importance of not overcleaning items, and the tax implications of selling silver assets, especially given the recent surge in silver prices.
Experts warn that overlooking beneficiary designations on IRAs is a major mistake, as it can lead to unintended heirs, costly probate, and unfavorable tax consequences. Properly updating beneficiaries is crucial to ensure assets go to the intended recipients and to optimize tax planning.
The Mega Millions jackpot has reached nearly $1 billion, but the amount you take home could vary significantly based on state taxes, with eight states not taxing lottery winnings at all. Federal taxes on winnings are 24% upfront, but could reach 37% after filing. Where you buy the ticket also matters, as out-of-state purchases could trigger additional taxes. Winners should consider consulting a tax professional to navigate the implications and make informed decisions.
Grayscale is considering the potential tax consequences for spot Bitcoin exchange-traded funds (ETFs) amid inaccurate reports about unfavorable tax implications. The asset management firm clarified that retail investors of the Grayscale Bitcoin Trust (GBTC) are not expected to face tax implications when the fund sells Bitcoin to generate cash for share redemptions. Grayscale explained that the GBTC is structured as a grantor trust, making cash redemptions non-taxable events for non-redeeming shareholders. This comes as the United States Securities and Exchange Commission (SEC) continues discussions with Grayscale regarding its spot Bitcoin ETF application.
Millions of Americans, particularly higher earners, are set to lose a popular 401(k) benefit due to changes brought about by the SECURE 2.0 Act. Starting in 2026, catch-up contributions for older, higher earners will have to be designated as after-tax Roth contributions instead of regular 401(k) ones. This change has significant tax implications and removes the upfront tax break offered by traditional 401(k)s for catch-up funds. While it may reduce tax savings for high earners in the short term, the shift to Roth accounts offers tax-free growth and withdrawals in retirement. However, it also means that affected individuals will see a decrease in their take-home pay as their contributions to Roth accounts will be deducted from their paychecks.
A couple with $4.5 million in savings is wondering about the best way to take their distributions in retirement. While the 4% rule is a guideline, it's important to calculate how much you expect to spend in retirement and see what percentage of your total retirement savings that actually is. Be aware of the "sequence of returns" risk and consult a qualified financial planner and/or an accountant to help you run the numbers. Consider making Roth conversions to be beneficial as your taxable income drops. Some advisers suggest pulling six to 12 months' of monthly expenses in a money-market account and then creating a paycheck effect. Keep in mind how many variables can change over the course of your retirement.