HPAL Tip of the Week: Take advantage of tax-saving losses.
To take advantage of tax-saving losses, you must sell depreciated stocks or mutual funds that are in a taxable account, not your 401(k) or IRA, according to www.kiplinger.com. However, if your traditional IRA has declined in value, it may be a great time to convert some or all of the money in it to a Roth. Losses you claim are first used to offset any profits you’ve locked in by selling investments during the year. So, if you have stocks or funds that performed well, but may have peaked, your losses may allow you to cash in without triggering a big tax bill. Read more here.
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