Late Game College Funding: Appreciated Assets
Let's say you've invested successfully to pay for "Junior's" college. But, you're staring at a big tax bill if you sell the assets to pay for tuition. Is there another option?
Let's say you've invested successfully to pay for "Junior's" college. But, you're staring at a big tax bill if you sell the assets to pay for tuition. Is there another option?
The good news about scholarships is that they're tax-free if used for qualified expenses. What happens if you combine GI Bill with scholarships?
After you retire from the military, there is a pretty good chance you'll be subject to state income tax. In many cases, you can reduce your state income taxes by effectively using 529 plans.
After you retire from the military and start your second career, there is a pretty good chance your employer will offer a 401(k). There is also a decent chance that you could have company stock inside that 401(k). If you do, you'll want to understand NUA.
Non-Qualified Stock Options are a form of equity compensation. If your career after the military involves the tech industry or start-ups, you could end up with this type of compensation. You can make a fair bit of money with them, but you can also end up with an interesting tax scenario as well.
One way employers sweeten the pot for highly-compensated employees is a NQDC. If you're offered one of these after you retire from the military, you're doing all right. But...they're not simple.
AMT isn't as big of an issue as it used to be. But, under circumstances, it can still apply
The military hasn't cornered the market on acronyms. There are plenty of them in the world of executive compensation. ISO is one of them and if you're especially likely to see these if you work for a tech company.
You would think that withholding taxes from your new job after retiring from the military would be a pretty simple thing. It's not. And, if you don't get it right, you could be looking at stroking a check for $6,000 - $7,000 to pay the taxes for your first full year in retirement.
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