dowell | Moment | Getty Images With the stock market hovering near record highs, you may have large profits sitting in a taxable brokerage account. Upon selling, you could owe capital gains taxes, levied at 0%, 15% or 20%, based on taxable income, if you own the assets for more than one year. There’s also a…
Marco Vdm | E+ | Getty Images For many investors, workplace retirement plans build long-term savings via automatic paycheck deferrals. But most employees don’t make Roth contributions, which can grow tax-free. Some 86% of retirement plans, such as 401(k)s, offered Roth contributions in 2024, but only 18% of investors with the option participated, according to…
After years of stock market growth, many investors are sitting on large profits in taxable accounts, which could trigger hefty capital gains when sold. That bill can be significant for wealthy Americans, with a 20% top capital gains rate, plus 3.8% net investment income tax, depending on earnings. One solution, known as a 351 conversion…
Gary Yeowell | Digitalvision | Getty Images President Donald Trump‘s “big beautiful bill” enacted trillions in tax breaks — and some residents of certain states and counties could see bigger benefits. In 2026, individual taxpayers will save an average of $3,752, according to a Tax Foundation analysis released this week. That figure falls to $2,505 in…
Alvaro Gonzalez | Moment | Getty Images If you’re eyeing a Roth conversion, President Donald Trump‘s “big beautiful bill” could make the strategy more complicated, according to financial experts. Roth conversions transfer pretax or nondeductible individual retirement account funds to a Roth IRA, which starts future tax-free growth. The trade-off is paying regular income taxes on the converted…
Sales tax free week at the Connecticut Post Mall, in Milford, Conn. Aug. 19, 2024. Connecticut Post/hearst Newspapers | Hearst Newspapers | Getty Images Every year, a handful of states offer shoppers a temporary tax break to encourage spending. This year, some of those “sales tax holidays” are happening as President Donald Trump’s tariffs threaten to…
Bartender Athena Young cleans glasses while speaking to the Review-Journal about the “no tax on tips” policy at Atomic Kitchen in Las Vegas, Wednesday, July 31, 2024. Las Vegas Review-journal | Tribune News Service | Getty Images Maddy Lopez, a bartender in Los Angeles, has spent 25 years working in the restaurant industry, where tips…
Riska | E+ | Getty Images President Donald Trump‘s “big beautiful bill” includes trillions of dollars of tax breaks, including a new charitable deduction for most filers — and there’s an easy way to maximize it, experts say. When filing taxes, you claim the greater of your itemized tax breaks or the standard deduction. But…
U.S. President Donald Trump talks to reporters as he departs the White House on July 25, 2025 in Washington, DC. Trump is traveling to his Balmedie golf courses in Scotland this week. Chip Somodevilla | Getty Images President Donald Trump said the administration is considering a rebate for some consumers from revenue raised by higher…
U.S. President Donald Trump meets with Philippine President Ferdinand Marcos Jr. (not pictured), in the Oval Office at the White House in Washington, D.C., U.S., July 22, 2025. Kent Nishimura | Reuters President Donald Trump said the administration is considering ending capital gains taxes on home sales to boost the housing market. When asked about…
