2021 Apr 26, 4:07pm
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The NIIT is the least-known of the Stealth Taxes and the one most likely to surprise retirees.The Net Investment Income Tax (NIIT) was created in the Affordable Care Act.It was labeled a Medicare surtax, but the proceeds go into general revenues…not the Medicare trust fund.The NIIT is a 3.8% tax on the excess unearned, or investment, income.
I didn't know about this until now:
Is a backdoor Roth IRA worth it?
Would you rather pay the taxes on your capital gains in your IRA today (converting=pay tax) or pay the higher Biden taxes on the future gains in your IRA later?
My point was that it might be better to pay the tax on your IRA conversion before it’s huge
Step 1: Move to Puerto Rico. Take only what you will need for more than a year.
Puerto Rico hopes to lure American mainlanders with an income tax of only 4%. Legally avoiding the 37% federal rate and the 13.3% California (or other state) rate sounds pretty good. What’s more, there is no tax on dividends, and no capital gain tax in Puerto Rico.
Yahoo comments on this person's retirement situation is priceless:https://finance.yahoo.com/m/6e9999fa-4a89-348a-92aa-763a230464bb/i%E2%80%99m-63-years-old-recently.html
Didn't know about this:Puerto Rico hopes to lure American mainlanders with an income tax of only 4%. Legally avoiding the 37% federal rate and the 13.3% California (or other state) rate sounds pretty good. What’s more, there is no tax on dividends, and no capital gain tax in Puerto Rico.But it seems I'd have to live there for 10 years first to get that tax rate on my appreciated 401k.
If I rent a place out for 90-100 days to pay the mortgage, I will almost certainly be able to claim it as a primary given our work and still live in the states. The audit risks are high, but innocent until proven guilty. 10 years is my retirement timeline.