There are so many ways around taxes if you plan. You should be diversifying your investment between:
- Roth (max out each year if AGI is under $206,000. You will pay no taxes on any growth or profit in these as long as you opened five years prior to distribution and are over 59 1/2. If one of the spouses earns a lot then file separately and the spouse earning under the max single AGI can max out the Roth each year. Over the years, with this stock at pennies this was a good way to go.
- Standard IRA - Pay zero taxes on any growth and distributions are taxed at your income at the time of distribution which should be low as you’re most likely (10-39.6%). If you’re tired, it should be close to long-term capital gains taxes.
- Normal Stock purchases should be split between spouses.
Even if a husband purchased all of the stock in his name standard stock can be transferred from husband to wife with no penalty and paying no taxes. And then, even if you have filed taxes jointly you can file them individually any year to keep each’s capital gains under the million dollar limit where the capital gains may be taxed higher. You can then go back to filing jointly the following year. Currently up to $469 = 15%, over that 20%. Proposed anyone earning over a million annually could pay normal rates on LTCG. Again, split shares between spouses, file separately for one year to take income under $1 mil after deductions. If no other income in yr could split up to $1,999.000 in profit and stay at 20%.
If you diversify your stock holdings you should never pay more than 10 to 20% max... And the Roth will be never be taxed
so that is fake news.
If you were single, and put all of your eggs in one standard stock investment basket and none in retirement funds, can’t help you.
BelizeMe
