if you don't want to deal with the details of the backdoor roth, why not just invest in a taxable brokerage account? The benefits of a taxable brokerage are:
1. only gains are subject to cap gains (lower) tax rate
2. you may have opportunities to tax loss harvest which can either offset cap gains of investments sold for a gain and if not, write off $3000 of ordinary income per year until losses are used up
3. leave taxable for beneficary (they get a step up in basis so no tax for your or heirs on cap gains at all)
4. if you invest in tax efficient funds, dividends should qualified and be taxed at lower cap gains rates.
5. you could sell taxable later when in more favorable tax rates (say in gap years early retirement before SS starts or if incurring long term care/extraordinary medical expenses, could reduce taxable income and reduce/eliminate taxes on cap gains)
6. you could donate appreciated shares to a DAF and not pay any taxes on appreciated assets
1. only gains are subject to cap gains (lower) tax rate
2. you may have opportunities to tax loss harvest which can either offset cap gains of investments sold for a gain and if not, write off $3000 of ordinary income per year until losses are used up
3. leave taxable for beneficary (they get a step up in basis so no tax for your or heirs on cap gains at all)
4. if you invest in tax efficient funds, dividends should qualified and be taxed at lower cap gains rates.
5. you could sell taxable later when in more favorable tax rates (say in gap years early retirement before SS starts or if incurring long term care/extraordinary medical expenses, could reduce taxable income and reduce/eliminate taxes on cap gains)
6. you could donate appreciated shares to a DAF and not pay any taxes on appreciated assets
Statistics: Posted by arcticpineapplecorp. — Thu May 30, 2024 9:28 pm