Taxes are a drag: ETF Tax Efficiency vs. Mutual Fund Inefficiency

Mutual Funds Article

Mutual fund annual distributions can create a major “tax drag” on your real after-tax return with annual fund tax costs potentially two times the annual fund expense ratio. Most ETFs never pay out capital gains and you determine when to take a capital gain by selling your shares of the ETF. Mutual funds distribute capital […]

New Tax Proposal Summary

New Tax Proposal Summary

New Tax Proposal Summary The recent proposal from the Biden Administration has made headlines as a tax on the wealthy to help pay for the near $2.3 Trillion dollar infrastructure plan. While this is still just a proposal and many of the details remain fuzzy, we wanted to provide you with a summary of some […]

2021 Tax and Retirement Plan Changes

Every year, the IRS evaluates and makes certain changes to adjust for inflation. Below is a list of which changes you can expect for 2021 for taxes, retirement contributions, and social security. Retirement Contributions 401(k) and IRA contribution limits The basic salary deferral amount for 401(k) and similar workplace plans remains flat at $19,500; the […]

3 Simple Steps to Avoid Estate Tax

The Tax Cuts and Jobs Act (TCJA) of 2018 increased the lifetime estate tax exclusion from $5.45 Million to $11.5 million. The exclusion also doubles for married couple to an exclusion of $22.8 million. As you can imagine, this made the need for estate planning unnecessary for most people. However, these exclusion limits may not […]

The Five Best 2020 Tax Planning Ideas

The Five Best 2020 Tax Planning Ideas 2020 will certainly be a year to remember (or forget). On the tax and retirement planning side of things it has presented us with some unique opportunities. Each one of these tax planning strategies depend upon your personal situation and should be discussed with both your advisor and […]

Biden Tax Proposals

Biden’s Tax Proposals  Below we have compiled several of the critical features of Joe Biden’s tax proposals. We have added commentary to clarify some of the proposals along with the significance of the changes. Please remember these are only initial proposals and there is no time frame for implementation. • Restoring the top marginal income […]

5 Questions for your Tax Preparer

“You don’t pay taxes–they take taxes.” -Chris Rock Many of you are gathering your W-2s, 1099s, K-1s, and other tax forms in preparation for filing your 2019 tax return. Please remember that we recommend that you wait to file your return until April if not later to account for corrections of 1099s.   Below is […]

Is a back-door Roth right for you?

Roth IRAs are typically off limits for many higher-income earners, due to strict income caps on contributions. However, there is another way into a Roth, the back-door method. Using this method, you open a traditional IRA, make a nondeductible contribution and then, at a later date, covert the funds into a Roth IRA. The appeal […]

Let’s Talk Taxes!

Blue Bell Private Wealth Management

There is only one reason why anyone invests their savings, to earn a return on that invested capital. However not all gains are created equal; in fact, two separate investments, both earning the same 5%, can have very different bottom lines. Why you may ask? Because of taxes. Taxable income and short-term capital gains are […]