Tax and Financial Planning Strategies for 2024 and Beyond
Tax season is in full swing, and it’s the perfect time for clients to start thinking about their tax and financial planning for 2024. With projected income, retirement income planning, RMDs, Secure 2.0 rules, Roth IRA conversions, and tax-conscious rebalancing all on the table, there are plenty of opportunities for clients to optimize their financial situation for the year ahead.
One key consideration is clients’ projected income for 2024. Changes in investment income, job compensation, or other factors could impact their tax situation. For clients in the gap period before taking Social Security or starting required minimum distributions (RMDs), there is flexibility in terms of which accounts to tap and when to generate retirement income.
For those facing RMDs in 2024, options like qualified charitable distributions or qualified longevity annuity contracts can help reduce taxes and future RMDs. Secure Act 2.0 also introduces new rules for surviving spouses regarding RMDs and deceased spouses, providing more flexibility and potential tax savings.
Roth IRA conversions can offer tax diversification and estate planning benefits, while tax-conscious rebalancing strategies like tax-gain harvesting can help optimize a client’s portfolio. By considering these factors and working with a financial advisor, clients can make informed decisions to maximize their financial well-being in 2024 and beyond.