Unlock Your Future: Ed Slott’s Essential Tax Strategies for 2025!

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Hey there, and welcome to The Long View! I’m Christine Benz, your trusted guide in personal finance and retirement planning. Today, we’re thrilled to have back the unparalleled Ed Slott, a leading authority on retirement and tax strategies. He’s not just the president and founder of Ed Slott & Company; he’s also a prolific author, with his latest book, The Retirement Savings Time Bomb Ticks Louder, making waves. Ed is a familiar face on PBS and co-hosts the engaging podcast The Great Retirement Debate. Plus, you can catch his insights on his popular website, IRAHelp.com. As a certified public accountant, Ed is here to illuminate the complexities of tax planning and retirement.

Background

Discover More About Ed Slott

“Ed Slott: Act Now on Historically Low Tax Rates,” The Long View podcast, August 19, 2020.

Tax-Loss Harvesting

“The Ins and Outs of Tax-Loss Selling,” Interview with Christine Benz and Ed Slott, December 14, 2022.

“The Best Investments for Taxable Accounts,” by Christine Benz, January 23, 2024.

“Yes, You Can Still Find Tax-Loss Harvesting Opportunities in 2024,” Investing Insights with Christine Benz and Margaret Giles, November 22, 2024.

Understanding Required Minimum Distributions (RMDs) and IRAs

Stay tuned for a wealth of knowledge on RMDs, how to manage them, and the strategies to minimize their impact on your financial future.

Qualified Charitable Distributions (QCDs)

If you’re over 70.5, the QCD strategy could be your golden ticket for charitable giving while minimizing taxes.

Anticipating Tax Law Changes in 2025

Prepare for potential changes in tax laws and how they could impact your financial landscape as we transition into 2025.

Episode Transcript

(Don’t miss vital disclosure information at the end of this episode.)

Christine Benz: Welcome back to The Long View. I’m Christine Benz, and today, we have the privilege of welcoming Ed Slott once more—our go-to expert on retirement strategies. Ed, it’s always a pleasure.

Ed Slott: Thank you! I’m thrilled to be here.

Benz: With 2024 wrapping up, let’s dive into tax planning strategies. One key component many investors look at is tax-loss selling. Given the strong market performance this year, are there likely to be many opportunities for tax-loss harvesting?

Slott: That’s a great question! It could be challenging to find suitable candidates for tax-loss harvesting in a strong market like this.

Benz: So what about employing a specific share-identification method to help identify potential losses? What’s your take on tracking cost basis for these strategies?

Slott: Yes, while this method offers flexibility, it can become a record-keeping challenge. Accurate accounting is essential to ensure it works effectively.

Benz: Many advisory firms are offering direct-indexing portfolios that facilitate active tax-loss harvesting. Are these solutions as beneficial as they appear?

Slott: I believe investors can achieve similar results without these complex structures, especially if they hold funds rather than individual stocks.

Benz: Switching gears, what’s your opinion on realizing gains proactively, especially for those expecting to be in a higher tax bracket later?

Slott: In most cases, that might not be the wisest strategy. It’s crucial to consider your long-term perspective.

Benz: What documentation is essential for legitimizing a tax loss in your portfolio?

Slott: Accurate matching of your records with the 1099-B forms from your custodian is vital for tax reporting.

Benz: Let’s also touch on RMDs. How much choice do individuals have regarding which accounts to withdraw from?

Slott: With IRAs, you can take your RMD from any combination of accounts, as long as you meet the required minimum.

Benz: What about RMDs from company retirement plans?

Slott: Each retirement plan is treated separately, so RMDs from 401(k) plans must be taken from those specific accounts.

Benz: The penalties for missed RMDs have changed under Secure 2.0. Can you elaborate on those adjustments?

Slott: The penalties for missed RMDs are now lower, but it remains critical for individuals to be vigilant about their distributions.

Benz: Let’s discuss the QCD as a strategy for those aged 70.5 and older. It seems like a win-win for charitable giving and tax benefits.

Slott: Absolutely! QCDs can satisfy RMDs and provide significant tax advantages, especially for those who regularly donate.

Benz: As we look ahead to the end of 2025, what tax law changes should we be mindful of?

Slott: Major changes are on the horizon, particularly concerning estate and gift tax exemptions that could significantly impact estate planning.

Benz: Ed, thank you for sharing your invaluable insights today. This conversation is always enlightening!

Slott: Thank you, Christine! I enjoyed our discussion.

Benz: Thank you for joining us on The Long View. Please take a moment to subscribe and rate the podcast on your preferred platform.

You can connect with me on social media @Christine_Benz on X or LinkedIn. A big shoutout to our podcast engineer, George Castady, and to Kari Greczek for producing our show notes each week.

We value your feedback! Share your thoughts or guest suggestions by emailing us at [email protected]. Until next time, thanks for tuning in!

(Disclaimer: This recording is for informational purposes only and should not be considered investment advice…)