prosperly.site

Tag: retirement tax planning

  • Required Minimum Distributions: How to Minimize Taxes

    Required Minimum Distributions: How to Minimize Taxes

    Miss your RMD deadline by even one day and the IRS can hit you with a penalty of up to 25% of the amount you should have withdrawn — here’s how to stay ahead of the rules.

    Introduction

    According to the Federal Reserve’s 2024 Survey of Consumer Finances, more than 60 million Americans hold assets in tax-deferred retirement accounts like 401(k)s and traditional IRAs. That’s great news for long-term savings — but it comes with a legal obligation most people underestimate: Required Minimum Distributions, or RMDs.

    If you’ve spent decades building a nest egg inside a tax-deferred account, the IRS eventually wants its share. Once you reach a certain age, the government requires you to start withdrawing a minimum amount each year — whether you need the money or not. Miss the deadline or withdraw too little, and the penalties are steep.

    In this guide, you’ll learn exactly what RMDs are, how they’re calculated, what changed under the SECURE 2.0 Act, how to withdraw strategically to reduce your tax bill, and the most common mistakes retirees make. Whether you’re approaching your first RMD or already managing annual withdrawals, this article will help you make smarter decisions with your retirement savings.

    What Are Required Minimum Distributions and How Do They Work?

    A Required Minimum Distribution is the minimum amount the IRS requires you to withdraw from certain retirement accounts each year once you reach a specific age. The logic is straightforward: the money in your traditional IRA or 401(k) has never been taxed. The IRS deferred taxes when you contributed — but it’s not going to let you defer them forever.

    RMDs apply to the following account types:

    • Traditional IRAs
    • 401(k), 403(b), and 457(b) plans (non-governmental)
    • SEP IRAs and SIMPLE IRAs
    • Most inherited IRAs (regardless of the beneficiary’s age)

    Roth IRAs are the major exception. Because contributions to a Roth IRA are made with after-tax dollars, the IRS does not require you to take RMDs from your own Roth IRA during your lifetime. (Inherited Roth IRAs have different rules.)

    Under the SECURE 2.0 Act signed in December 2022, the RMD starting age was pushed to 73 for individuals born between 1951 and 1959, and to 75 for those born in 1960 or later. If you turned 73 before 2023, you were already subject to the previous rules. This is one of the most impactful retirement law changes in decades, giving millions of Americans more time to let their savings grow.

    Your first RMD can be delayed until April 1 of the year following the year you turn 73 (or 75, depending on your birth year). After that, all subsequent RMDs must be taken by December 31 of each calendar year. Be aware: if you delay your first RMD to April 1, you’ll be required to take two RMDs in that same year, which could push you into a higher tax bracket.

    How Is Your RMD Amount Calculated?

    The IRS uses a specific formula to calculate your annual RMD. According to IRS Publication 590-B, the calculation is:

    RMD = Account Balance ÷ Distribution Period (Life Expectancy Factor)

    The account balance used is the value of your retirement account as of December 31 of the previous year. The life expectancy factor comes from the IRS Uniform Lifetime Table — a set of divisors that decrease each year as you age, resulting in gradually larger RMD percentages over time.

    Here’s a simplified example:

    • Your traditional IRA balance on December 31, 2025: $500,000
    • Your age in 2026: 73
    • IRS life expectancy factor at age 73: 26.5
    • Your 2026 RMD: $500,000 ÷ 26.5 = $18,868

    As you get older, that divisor shrinks, meaning a larger percentage of your balance must be withdrawn each year. At age 80, for instance, the factor drops to 20.2. At age 90, it falls to 12.2.

    If you have multiple traditional IRAs, you can calculate the RMD for each separately but take the combined total from any one (or a combination) of those accounts. However, if you have multiple 401(k) plans, you must take each plan’s RMD separately from that specific plan — they cannot be aggregated the way IRAs can.

    The IRS provides worksheets and tables in Publication 590-B, and most major custodians like Fidelity and Vanguard will calculate your RMD for you — though the responsibility for accuracy and timing always falls on you.

    Key Strategies to Minimize the Tax Impact of RMDs

    RMDs are counted as ordinary income, which means they can push you into a higher tax bracket, trigger higher Medicare premiums (via IRMAA surcharges), increase taxes on your Social Security benefits, and reduce eligibility for certain deductions. The good news: there are legal strategies to reduce your RMD tax burden significantly.

    1. Roth Conversions Before RMDs Begin

    One of the most effective strategies is converting a portion of your traditional IRA to a Roth IRA in the years before your RMDs start. Since Roth IRAs are not subject to RMDs, this reduces the balance that will be subject to mandatory withdrawals — and future growth in the Roth account is tax-free.

    For example, if you retire at 65 and RMDs start at 73, you have an 8-year window to do partial Roth conversions. The goal is to convert enough each year to fill up your current tax bracket without jumping into the next one. This requires careful tax planning, ideally with a CPA.

    2. Qualified Charitable Distributions (QCDs)

    If you’re charitably inclined and age 70½ or older, a Qualified Charitable Distribution (QCD) lets you transfer up to $105,000 per year (2026 inflation-adjusted limit) directly from your IRA to a qualified charity. That amount counts toward your RMD but is excluded from your taxable income — a powerful combination.

    This strategy is especially valuable for retirees who take the standard deduction and wouldn’t otherwise benefit from charitable deductions. It effectively makes your charitable giving tax-free.

    3. Withdraw Strategically Throughout the Year

    Rather than taking your entire RMD in December, consider spacing withdrawals throughout the year. This gives your account more time invested, can help with cash flow planning, and may reduce the risk of a year-end market dip affecting your withdrawal amount.

    4. Coordinate RMDs with Social Security and Other Income

    If you’re receiving Social Security benefits, up to 85% of your benefits can become taxable depending on your combined income — and RMDs count toward that calculation. A financial advisor can help you sequence withdrawals from different accounts to minimize the percentage of Social Security that gets taxed. You can learn more about timing Social Security optimally at Social Security Optimization: When and How to Claim.

    Costs, Fees, Penalties, and Risks to Understand

    The IRS does not take missed RMDs lightly. Under the SECURE 2.0 Act, the penalty for failing to take an RMD was reduced from 50% to 25% of the amount that should have been withdrawn — and drops further to 10% if you correct the mistake within two years. Still, that’s a painful penalty that can be entirely avoided with proper planning.

    Beyond penalties, consider these risks:

    • Tax bracket creep: Large RMDs combined with Social Security, pension income, or part-time work can push you into a higher federal bracket unexpectedly.
    • IRMAA surcharges: Medicare Part B and Part D premiums increase at higher income levels. In 2026, IRMAA thresholds start at $106,000 (single) and $212,000 (married filing jointly). A large RMD can trigger significantly higher premiums.
    • State income taxes: Most states tax RMDs as ordinary income, though some states like Florida, Texas, and Nevada have no state income tax — a factor worth considering in retirement location planning.
    • Account depletion risk: If your RMDs are larger than expected due to strong market gains, you may be withdrawing more than you intended to spend — raising questions about reinvestment strategy.

    Common RMD Mistakes to Avoid

    Even financially savvy retirees make costly RMD errors. Here are the five most common — and how to avoid them:

    Mistake 1: Missing the Deadline

    Every year, the RMD deadline is December 31 (with the exception of your very first RMD, which can be delayed to April 1 of the following year). Set a calendar reminder in October to review your RMD and ensure the withdrawal is processed in time — custodians can have processing delays.

    Mistake 2: Taking Only One RMD When You Have Multiple Plans

    Remember: if you have multiple 401(k) accounts from different employers, each plan requires its own separate RMD withdrawal. You can’t aggregate them the way you can with IRAs. Many retirees mistakenly consolidate the calculation and miss a plan entirely.

    Mistake 3: Forgetting Inherited IRAs

    The SECURE Act of 2019 eliminated the "stretch IRA" strategy for most non-spouse beneficiaries, requiring them to fully distribute inherited IRA assets within 10 years. In 2024, the IRS finalized rules requiring annual RMDs within that 10-year window in certain cases. If you inherited an IRA, don’t assume you can wait until year 10 to take everything — consult a tax professional to understand your specific situation.

    Mistake 4: Not Withholding Taxes from Your RMD

    RMDs are taxable income, but unlike a paycheck, taxes aren’t automatically withheld unless you request it. You can elect to have federal (and state) taxes withheld directly from your RMD distribution. Failing to do so can result in a surprise tax bill — and potentially underpayment penalties — at tax time.

    Mistake 5: Ignoring the First-Year Double RMD Trap

    If you delay your first RMD to April 1 of the year after you turn 73, you’ll also owe a second RMD for that same calendar year by December 31. Taking two full RMDs in one year can significantly increase your taxable income. In many cases, it’s smarter to take your first RMD in the actual year you turn 73 to spread the tax impact.

    Alternatives and Complementary Strategies to Consider

    RMDs are mandatory for certain accounts — but smart retirement planning involves a mix of account types that give you more flexibility.

    Roth IRA

    Contributing to or converting to a Roth IRA earlier in your career or during low-income retirement years means that money grows tax-free and has no RMDs during your lifetime. This is one of the most valuable tools for managing retirement tax exposure. If you haven’t already explored the Roth IRA vs. Traditional IRA comparison, it’s worth reviewing before making conversion decisions.

    Health Savings Account (HSA)

    An HSA is the only account that’s triple tax-advantaged: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Unlike IRAs, HSAs have no RMDs. If you’re still eligible (enrolled in a high-deductible health plan), maxing out your HSA and letting it grow for medical expenses in retirement is a powerful complement to your RMD planning. This can be especially powerful when paired with a solid Medicare strategy.

    403(b) and 457(b) Plans

    If you work in education, healthcare, or government, your retirement plan may have unique RMD rules or rollover options. For instance, 457(b) plans for government employees allow penalty-free withdrawals at any age upon separation from service — giving you more flexibility before RMDs kick in. Learn more at 457(b) Plan: The Retirement Account You May Be Missing. For teachers and nonprofit workers, reviewing 403(b) Plan: Retirement Savings Guide for Teachers can help clarify how your specific plan handles distributions.

    Frequently Asked Questions About RMDs

    Q: What happens if I don’t need the RMD money — can I reinvest it?

    Yes. Once you’ve taken the required distribution and paid taxes on it, you can reinvest the after-tax amount in a taxable brokerage account. You cannot put it back into a tax-deferred retirement account (unless you’re still working and eligible to contribute to a 401k or IRA), but investing in a regular brokerage account continues to grow your wealth.

    Q: Do I have to take an RMD the year I turn 73 if I’m still working?

    If you’re still actively employed and participating in your current employer’s 401(k) plan, you may be able to delay RMDs from that specific plan (not from old 401(k)s or IRAs) until you retire — as long as you don’t own more than 5% of the company. This is sometimes called the "still-working exception."

    Q: Are RMDs eligible for rollover to another retirement account?

    No. RMDs are not eligible for rollover. You cannot transfer your RMD to another IRA or 401(k) to defer taxes. The withdrawal must be taken as a distribution, and taxes are due for that year. This is a common point of confusion, especially for retirees who are used to rolling over accounts.

    Q: Can my RMD amount change from year to year?

    Yes, your RMD changes every year based on two variables: your account balance on December 31 of the prior year and your updated life expectancy factor from the IRS table. A strong year in the market will increase your account balance and therefore your RMD. A down year will reduce it. That’s why annual RMD recalculation is essential.

    Q: What if my spouse is my sole beneficiary and is much younger than me?

    Good news: if your sole IRA beneficiary is a spouse who is more than 10 years younger than you, you can use the IRS Joint Life and Last Survivor Expectancy Table instead of the standard Uniform Lifetime Table. This gives you a larger divisor, which means a smaller required withdrawal — and lower taxes each year.

    Final Takeaways: Plan Ahead, Not After the Fact

    Required Minimum Distributions are one of the most predictable aspects of retirement — the rules are set, the timelines are fixed, and the penalties for non-compliance are clearly defined. That predictability is actually an advantage: it means you can plan around RMDs years in advance.

    Start by knowing your starting age under current law (73 or 75, depending on your birth year), understanding which accounts are subject to RMDs, and calculating your projected RMD amounts in retirement. Then layer in strategies like Roth conversions during low-income years, QCDs if you’re charitably minded, and careful coordination with Social Security income to keep your tax bill as low as legally possible.

    The biggest mistake most retirees make is waiting until they’re 72 or 73 to think about RMDs. The best outcomes come from planning in your 50s and 60s, when you still have time to reposition assets. Talk to a licensed financial advisor or CPA to build a withdrawal strategy tailored to your income, tax bracket, and retirement goals.

    This article is for educational purposes only and does not constitute financial, tax, or investment advice. Always consult a licensed financial advisor, CPA, or attorney before making financial decisions.

  • Roth IRA Conversion: When It Makes Sense and How to Do It

    Roth IRA Conversion: When It Makes Sense and How to Do It

    Converting a traditional IRA to a Roth IRA at the right time could save you tens of thousands of dollars in retirement taxes — but timing is everything.

    According to the Federal Reserve’s 2024 Survey of Consumer Finances, nearly half of Americans over 55 hold the majority of their retirement savings in tax-deferred accounts like traditional IRAs and 401(k)s. That means a massive tax bill is waiting for them in retirement — one that could shrink their nest egg far more than they expect.

    A Roth IRA conversion is one of the most powerful — and most misunderstood — moves in personal finance. Done right, it can dramatically reduce your lifetime tax burden, eliminate required minimum distributions, and give you more flexibility in retirement. Done wrong, it can push you into a higher tax bracket and leave you worse off than before.

    In this guide, you’ll learn exactly how Roth IRA conversions work, who they make sense for, how to execute one step by step, and — critically — the mistakes that could cost you thousands. This is educational content, not personalized tax advice. Always consult a licensed financial advisor or CPA before converting.

    What Is a Roth IRA Conversion and How Does It Work?

    A Roth IRA conversion is the process of moving money from a tax-deferred retirement account — like a traditional IRA, SEP IRA, SIMPLE IRA, or old 401(k) — into a Roth IRA. The key difference: traditional IRAs are funded with pre-tax dollars and taxed when you withdraw. Roth IRAs are funded with after-tax dollars and grow tax-free forever.

    When you convert, the IRS treats the converted amount as ordinary income in the year you do it. So if you move $30,000 from a traditional IRA to a Roth IRA, you’ll owe income tax on that $30,000 — at your current marginal rate.

    The upside? Once that money is inside a Roth IRA, it grows tax-free. You pay no taxes on withdrawals in retirement, and unlike traditional IRAs, you’re never required to take distributions (no RMDs during your lifetime).

    Anyone with a traditional IRA can do a Roth conversion — there are no income limits on conversions (only on direct Roth IRA contributions). This makes conversions a key strategy for high earners who can’t contribute directly to a Roth IRA.

    According to the IRS, contributions to Roth IRAs are limited in 2026 to $7,000 per year ($8,000 if you’re 50 or older), and direct contributions phase out at incomes between $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly. But again — there is no income limit on conversions.

    Key Benefits of a Roth IRA Conversion

    The IRS reports that traditional IRA and 401(k) RMDs — required minimum distributions that begin at age 73 — can push retirees into unexpectedly high tax brackets, increasing Medicare premiums and reducing Social Security benefits. A Roth conversion can help you avoid that trap entirely.

    Here’s why a Roth conversion can be a game-changer:

    1. Tax-free growth for the rest of your life. Once converted, your money compounds without the IRS taking a cut. A $100,000 conversion at age 55, growing at a hypothetical 7% annually for 20 years, could become over $386,000 — all tax-free if you follow withdrawal rules.

    2. No Required Minimum Distributions (RMDs). Traditional IRAs force you to withdraw a growing percentage each year starting at age 73, whether you need the money or not. Roth IRAs have no RMDs during the original owner’s lifetime — giving you far more control. To understand how RMDs work and why avoiding them matters, see our Complete RMD Guide.

    3. Tax diversification in retirement. Having both taxable and tax-free accounts gives you flexibility to manage your tax bracket in retirement — pulling from taxable accounts in high-income years and Roth in lower years.

    4. Estate planning advantages. Roth IRAs pass to heirs income-tax-free. While heirs must draw down inherited Roths within 10 years (under the SECURE 2.0 Act rules), they won’t owe income tax on those withdrawals.

    5. Shields against future tax increases. Tax rates change. Converting while rates are at historically moderate levels locks in your tax liability now — hedging against potentially higher rates in the future.

    How to Do a Roth IRA Conversion: Step by Step

    The mechanics of a Roth conversion are straightforward, but the strategy around timing and amount requires careful planning. Here’s how to do it:

    Step 1: Open a Roth IRA if you don’t have one. You’ll need a Roth IRA account at a brokerage like Fidelity, Vanguard, or Charles Schwab. Opening one is free and takes about 15 minutes online.

    Step 2: Decide how much to convert. This is the most critical step. Work with your CPA or tax advisor to determine how much you can convert without bumping into the next tax bracket. For example, if you’re in the 22% bracket and have room before hitting the 24% threshold, you might convert only up to that line.

    Step 3: Request the conversion from your custodian. Contact your IRA provider and request a direct transfer from your traditional IRA to your Roth IRA. This is the cleanest method. You can also request a check (indirect rollover), but you then have 60 days to deposit it into the Roth account — and the 60-day rule is strict.

    Step 4: Pay the taxes — but not from the converted funds. This is crucial. If possible, pay the taxes owed on the conversion using money from a taxable savings or checking account. Paying taxes from the converted amount reduces the money working for you inside the Roth — and if you’re under 59½, using converted funds to pay the tax may trigger a 10% early withdrawal penalty.

    Step 5: Report the conversion on your tax return. Your IRA custodian will send you Form 1099-R, which reports the distribution. You’ll use Form 8606 to report the non-deductible portion (if any). Your CPA should handle this, but be aware it’s required.

    Step 6: Wait for the 5-year rule. Roth IRA conversions have their own 5-year clock. Each conversion’s principal (the amount you converted) must sit in the Roth for five years before you can withdraw it penalty-free — regardless of your age. This rule applies separately from the general 5-year Roth IRA rule on earnings.

    Costs, Fees, and Risks to Know Before Converting

    Morningstar analysis has shown that poorly timed Roth conversions — particularly ones that push retirees into the highest tax brackets — can actually leave them worse off over a 20-year retirement horizon compared to simply paying taxes in retirement. Conversion is not automatically beneficial.

    Here are the real costs and risks to weigh:

    Immediate tax bill. The converted amount is taxed as ordinary income in the year of conversion. A large conversion could push you into the 32%, 35%, or even 37% bracket. That’s potentially hundreds of thousands of dollars in taxes paid upfront.

    Medicare premium surcharges (IRMAA). A large conversion can spike your Modified Adjusted Gross Income (MAGI), triggering Income-Related Monthly Adjustment Amounts on Medicare Part B and Part D. For 2026, IRMAA surcharges can add $1,000+ per year to your Medicare costs — and these look back two years, so a 2026 conversion affects 2028 premiums.

    Impact on Social Security taxation. Higher income from a conversion can make more of your Social Security benefits taxable — up to 85% of benefits are taxable above certain income thresholds.

    State income taxes. Most states tax converted amounts as ordinary income. Some states — like Illinois and Mississippi — exempt retirement income. Others like California do not. Know your state’s rules before converting.

    Opportunity cost. If you pay a large tax bill out of pocket today, those dollars aren’t compounding in the market. The math only works in your favor if you live long enough and your future tax rate is higher than your current rate.

    Common Roth Conversion Mistakes That Cost People Thousands

    Converting without a plan is one of the most expensive moves in personal finance. Here are the most common errors — and how to avoid them:

    Mistake #1: Converting too much in a single year. Many people convert their entire traditional IRA at once, thinking bigger is better. This often pushes them into the top tax bracket, triggering a massive tax bill. A smarter approach: partial, multi-year conversions — also called a Roth conversion ladder — spreading the tax hit across several years.

    Mistake #2: Paying the taxes from the converted funds. If you withdraw $50,000 and immediately use $12,000 of it to pay taxes, only $38,000 goes into the Roth. Worse, if you’re under 59½, that $12,000 used for taxes may be treated as an early distribution with a 10% penalty — an additional $1,200 hit.

    Mistake #3: Converting in a high-income year. If you had a particularly profitable year — bonus income, business sale, exercised stock options — adding a conversion on top dramatically raises your tax exposure. In most cases, conversions make the most sense in low-income years: early retirement before Social Security starts, years between jobs, or years with significant deductions.

    Mistake #4: Ignoring the 5-year rule on conversions. If you’re already in retirement and plan to tap converted funds within five years, those withdrawals of principal may be subject to a 10% penalty — even if you’re over 59½. Each conversion starts its own five-year clock.

    Mistake #5: Not accounting for state taxes. Some people calculate their federal tax hit accurately but forget their state taxes. In a high-tax state like California (top marginal rate over 13%), a large conversion can result in a combined federal and state tax rate exceeding 50% on converted dollars at the highest brackets.

    Alternatives to a Full Roth IRA Conversion

    A Roth conversion isn’t the only way to build tax-free retirement income. Consider these alternatives depending on your situation:

    1. Direct Roth IRA Contributions
    If your income allows it, contributing directly to a Roth IRA ($7,000/year in 2026, $8,000 if 50+) is simpler than converting and avoids any immediate tax hit. This works best for younger earners or those with lower incomes who haven’t yet maxed out this option.

    2. Roth 401(k) Contributions
    Many employers now offer Roth 401(k) options. Unlike Roth IRAs, there are no income limits, and contribution limits are much higher — up to $23,500 in 2026 ($31,000 if 50+). Directing new contributions to a Roth 401(k) builds tax-free savings without triggering any immediate tax event.

    3. Tax-Efficient Taxable Investment Accounts
    For investors who’ve maxed out retirement accounts, a taxable brokerage account using low-cost ETFs can be tax-efficient — particularly if you hold assets long enough to qualify for long-term capital gains rates (0%, 15%, or 20% depending on income). This won’t give you the same tax-free growth as a Roth, but it avoids the large upfront conversion tax. You might also explore REITs for income-producing alternatives within a taxable account.

    Generally speaking, conversions make the most sense for people who have significant traditional IRA balances, expect to be in a higher tax bracket in retirement, have outside cash to pay the tax bill, and are at least 10+ years from needing the converted funds.

    Frequently Asked Questions About Roth IRA Conversions

    Q: Is there a limit on how much I can convert to a Roth IRA?
    No. The IRS places no annual cap on the amount you can convert from a traditional IRA or 401(k) to a Roth IRA. The only limit is your willingness to pay the resulting tax bill. In contrast, direct annual Roth contributions are capped at $7,000 ($8,000 if 50+) in 2026.

    Q: Can I undo a Roth IRA conversion if the market drops?
    No. As of 2018, the Tax Cuts and Jobs Act permanently eliminated the ability to “recharacterize” (reverse) Roth conversions. Once converted, the transaction is final. This is why converting during a market downturn — when account values are lower — can actually be advantageous: you pay tax on a smaller amount.

    Q: When is the best time to do a Roth IRA conversion?
    Generally speaking, the best window is during a period of temporarily low income: the years between early retirement and when Social Security begins, a gap year, or a year with large deductions like major charitable contributions. Many financial planners also point to market downturns as opportune conversion moments — lower account values mean lower taxable amounts.

    Q: Does a Roth conversion affect my ability to contribute to a Roth IRA?
    No. Converting is separate from contributing. Even if you convert $200,000 this year, you can still contribute the annual maximum ($7,000 or $8,000) to a Roth IRA — as long as your income falls within the contribution limits.

    Q: What happens to inherited Roth IRAs?
    Under the SECURE 2.0 Act rules, non-spouse beneficiaries who inherit a Roth IRA must fully distribute the account within 10 years of the original owner’s death. However, qualified distributions remain income-tax-free to the heirs — which is a significant estate planning advantage compared to inheriting a traditional IRA.

    Is a Roth IRA Conversion Right for You?

    A Roth IRA conversion is one of the most sophisticated tax-planning tools available to American investors — but it’s not right for everyone. The math depends on your current tax rate versus your expected rate in retirement, how long you have until you need the money, and whether you have outside funds to pay the tax bill without touching the converted amount.

    The strongest candidates for conversion are people in their 50s and early 60s who have a gap between early retirement and Social Security, significant traditional IRA balances, and cash on hand to cover taxes. Those who are already in the top tax bracket or expect significantly lower income in retirement may be better served by other strategies.

    Start by running the numbers with a qualified CPA or financial advisor. Even a one-hour planning session could identify the optimal conversion amount and timing that saves you tens of thousands over a 20-30 year retirement. The best financial decisions are rarely the flashiest — they’re the ones made with patience, clear numbers, and expert guidance.

    This article is for educational purposes only and does not constitute financial, tax, or investment advice. Always consult a licensed financial advisor, CPA, or attorney before making financial decisions.