With the new tax law kicking in this year, lots of things are changing for taxpayers, including itemized deductions. Prior to 2018, taxpayers who itemized deductions were able to lower their tax bill with few restrictions. But now, with the new cap on deductions for state and local income and property taxes set at a maximum of $10,000, being able to itemize is not assured.
It’s benefits season. The time of year when employees have to decide which health plan to select, which investments to select for your 401(k), and how much to put into your flexible spending plan. The number of options and complexity of all the different benefit options can be dizzying to many employees.
Ed Slott, a well-respected authority on IRAs, published an article this month in Financial Advisor Magazine titled: “When Roths May Not Be Right”. In it he gives a dozen reasons why Roth conversions may not be a good idea. And we agree with overall message. As with most strategies, there are always some drawbacks.