I found this article from Newsday interesting. They list six ways to save taxes, based mostly on depressed asset values, something that I’ve written about before.
- Convert your traditional IRA to a Roth IRA.
- “Undo” or recharacterize a Roth IRA conversion if your initial conversion was in 2008 when values were significantly higher.
- If you have begun taking Required Minimum Distributions from your IRA, don’t take one in 2009.
- Take what the articles calls “inherited IRA deductions” which is an income tax deduction for the estate taxes paid on an inherited IRA for something that is known as income in respect of a decedent (IRD).
- “Get ready” for higher taxes rates that are coming.
- Transfer assets out of your estate while they are at a low value.
Each of these may be a good idea depending upon your individual situation. Before going through with any of them you should see an expert — a tax attorney, CPA, or financial planner that specializes in this area.