Updated for 2021 Archives | Darrow Wealth Managment

401(k) Plans Diversification Employee benefits Financial Planning Forbes Retirement Planning Tax planning Updated for 2021

Net Unrealized Appreciation Rules for Company Stock in a 401(k)

If you have company stock in your 401(k), you may want to consider whether to take advantage of net unrealized appreciation at retirement. Under the net unrealized appreciation rules, employees can roll over the portion of their 401(k) invested in company stock to a brokerage account and pay tax at…

Kristin McKennaSeptember 13, 2021

Charitable giving Forbes IRA Rollover Tax planning Updated for 2021

How to Donate Your RMD Using Qualified Charitable Distributions

Can you give money to charity using your IRA? For individuals 70 1/2 or older - the answer is usually yes. What many retirees don't know is they can donate all, or a portion of, their required minimum distribution (RMD) directly to charity. It's called a qualified charitable distribution or…

Kristin McKennaAugust 30, 2021

Charitable giving Tax planning Updated for 2021

How to Donate Stock to Charity: Donor-Advised Funds

Giving appreciated stocks can be a great way to maximize your gift to charity and your tax benefits. When you donate cash, you're giving after-tax dollars. It may reduce your income tax liability if you itemize deductions, but if not, there's no benefit.¹ But when you give an appreciated stock,…

Kristin McKennaAugust 16, 2021

Forbes Tax planning Traditional IRA Updated for 2021

Avoid the Double Tax Trap When Making Non-Deductible IRA Contributions

Anyone with earned income can make a non-deductible (after tax) contribution to an IRA and benefit from tax-deferred growth. But it may not be worth it due (in part) to often overlooked ongoing recordkeeping requirements. For many, the biggest risk and most common downfall is significant: paying taxes again when…

Kristin McKennaJuly 13, 2021

Retirement Planning Roth IRA Tax planning Updated for 2021

Explaining the Backdoor Roth and Mega Backdoor Roth IRA

Many individuals have heard of the backdoor Roth before, but the mega backdoor Roth is getting a lot of attention recently. Here are the differences between the regular backdoor Roth vs the mega backdoor Roth, who can use these strategies, and who may actually want to consider them. (more…)

Kristin McKennaJuly 6, 2021

Current events Investing Tax & Estate Planning Tax planning Updated for 2021

Will Tax Hikes Hurt Stocks? Impact of Tax Rates on the S&P 500

Between the Biden tax plans and other bills already before Congress, it's likely that some level of tax legislation will make its way into law before 2022. For investors, there's a concern that tax hikes will hurt stocks, a reasonable conclusion. But historically, tax rates have mostly moved independently from…

Kristin McKennaMay 11, 2021

401(k) Plans 403(b) Plans Forbes Retirement Planning Secure Act SEP IRA Traditional IRA Updated for 2021

4 Ways the Secure Act 2.0 Would Change Retirement Planning

If passed, the 'Secure Act 2.0' would significantly alter the retirement landscape. Officially called the Securing a Strong Retirement Act of 2021, the bill is essentially a follow up to the 2019 Secure Act. After passing the House Ways and Means Committee yesterday, the proposed legislation is now going to…

Kristin McKennaMay 10, 2021

IPO Stock options Updated for 2021

What Happens to Stock Options in a SPAC Merger?

Although the most common way for a company to go public is through the traditional initial public offering (IPO) process, it's not the only method. Although SPACs (special purpose acquisition companies) were first created in 1993, they've recently became a very popular way for a company to go public. This…

Kristin McKennaApril 19, 2021

Building Wealth Diversification IPO Stock options Updated for 2021 Video

Managing Stock Options in a Direct Listing – Going Public Without an IPO

What happens to stock options if a company goes public without an IPO? A Direct Public Offering (DPO) or direct listing is a way for a company to list itself on a public stock exchange without the traditional Initial Public Offering (IPO) process. If you have employer stock options and…

Kristin McKennaApril 1, 2021

Building Wealth Diversification IPO ISOs NQSOs Stock options Updated for 2021

What Does an IPO Mean for Employees? What to Do When Your Company Goes Public.

There were nearly 500 IPOs in 2020. According to data from FactSet, that's just 67 shy of the combined total between 2015 and 2017. And the race to go public isn't slowing down. As of the end of February 2021, more than 230 companies have gone public this year alone.…

Kristin McKennaMarch 6, 2021