Year-end tax planning for 2013: qualified and non-qualified plans

By Steve Savant

Ash Brokerage Corporation


Qualified plans are generally popular because of pre-tax or deductible contributions and tax deferral accumulation. Some employer-sponsored defined contribution plans even match employee contributions to some degree. But ultimately those plans are subject to ordinary income taxation and could trigger Social Security benefit taxation. A new trend for lower tax bracket savers may be non-qualified tax-deferred plans and/or Roth IRAs. Steve and Ken reintroduce Roth conversions as an option to lower retirement income taxation.