Advisor Tax Mistake #1 – Getting Bad Tax Advice
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This article is the last in a series of the seven most-common mistakes financial advisors make on tax planning with clients (visit RetirementTaxServices.com for more great content from Steven Jarvis and RTS).
When I last Googled “IRS RMD Table,” the first result that popped up was a link to an active IRS web page with the outdated RMD information. Millions of people who clicked on the first link provided by Google were given, by the IRS, incorrect information. Countless other examples of incorrect tax information, ranging from capital gains rates to Medicare premiums to gifting limits and especially the math on Roth conversions can be found prominently displayed across the internet, including on some of the most reputable websites.
This plague of tax misinformation isn’t limited to consumers searching Google. Continuing education classes, conference workshops and other advisor-facing sources have equally outdated or just plain wrong tax information. Even when the information is current and correct, there is very little information that helps advisors and their clients bridge the gap between tax knowledge and actual implementation of tax strategies.
To become experts at implementing tax strategies, advisors have to put in the work. There are a lot of great resources in the profession. Even though I put out a ton of tax content, I still love learning from the tax section of Advisor Perspectives, the tax “nerds” at Kitces.com and other more specific resources like Ed Slott on all things IRA. These and other resources will give you great insight, but only if you consistently study and implement.