Tax Planning

Articles and resources related to Tax Planning.

Roth IRAs: Is Now the Ideal Time to Consider a Conversion?

Kevin Koski, CPA
Principal Tax Advisor

Carlson Capital Management works with many clients each year to implement a Roth IRA conversion strategy in which a portion of their tax deferred accounts (i.e. 401(k), IRA) are converted to a Roth IRA. Generally speaking, the long-term benefits of a conversion strategy are measured by comparing the amount of taxes paid today upon conversion versus the taxes avoided in the future on all of the investment earnings and growth accruing after the conversion. Many will avoid paying the taxes today on ... [Continue Reading]

Should I Contribute to a Roth 401(k) Instead of the Traditional 401(k)?

Kevin Koski, CPA
Principal Tax Advisor

With many employer-based retirement plans (i.e. 401(k) or 403(b) plans) now offering a choice between making contributions into a Roth or a Traditional option, a conversation we frequently have with clients centers on the difference between contributing to one versus the other. As with most financial and tax planning questions, the answer depends a great deal on your personal situation, but there are several factors that are generally the most important to consider in deciding if a Roth is a ... [Continue Reading]

What You Should Know About The Secure Act of 2019

Kevin Koski, CPA
Principal Tax Advisor

What some are referring to as one of the most significant pieces of legislation related to retirement planning in more than a decade, the U.S. House of Representatives recently passed what has been coined the SECURE (Setting Every Community Up for Retirement Enhancement) Act, by an overwhelming and bi-partisan vote of 417-3. The bill will now move to the U.S. Senate where it also appears to have bi-partisan support. As the bill is very likely to become law in the coming weeks or months, ... [Continue Reading]

Minnesota Individual Income Tax Changes Represent Federal Conformity

Kevin Koski, CPA
Principal Tax Advisor

As a result of the Omnibus Tax Bill which was passed during Minnesota's recent legislative special session, then signed by Governor Walz on Friday, May 31, 2019, Minnesota individual income tax law will now largely conform to federal tax law. Our Tax Team will be actively analyzing the changes and will be working with CCM clients in the remainder of 2019 to help optimize your tax situation. In the meantime, following is a summary of the key takeaways from the 2019 Omnibus Tax Bill to be aware ... [Continue Reading]

Reading the Fine Print — Optimizing Your Employer’s Retirement Plan

Matthew Rich, CFP^®, J.D.
Senior Integrated Wealth Advisor

When new office employees are starting a new job, they often go through the same routine. The first few days are spent locating the break room, finding a good parking spot, and orienting to the cultural norms. Then there’s the meeting with human resources—you get a key card, complete payroll deduction paperwork, and review compliance documents. Dental insurance? Extra life insurance? How much should the company take out for 401(k) contributions? Pre-tax or after tax? Most people go with the ... [Continue Reading]