The 3.8% NIIT: Who Pays and How to Dodge
The 3.8% Net Investment Income Tax hits high earners with dividends, gains, and rent. See the thresholds, worked examples, and legitimate ways to cut the bill.
Tag: taxes
All the articles with the tag "taxes".
Rule of 55: Early 401k Access, No Penalty
The Rule of 55 lets you pull from your 401k penalty-free after leaving your job at 55 or later. Learn who qualifies, the rollover trap, and the real tax math.
Contractor vs W-2: The Real Comp Math
A $180K W-2 offer needs a 1099 rate of about $214K a year, or $116 an hour, to break even. Here is the full payroll tax, benefits, and bench-time math.
NQDC Plans: Worth the Employer Risk?
Non-qualified deferred compensation can cut your tax bill, but the balance is an unsecured IOU from your employer. Here is when an NQDC plan is worth the risk.
State Tax Residency When You Move
Moving from California or New York to Texas? Your old state may still tax you. Domicile, the 184-day test, the convenience rule and audits, with 2025 numbers.
Direct Indexing: Worth the Fee?
Direct indexing costs 3 to 13 times more than an index ETF and only pays off through tax-loss harvesting. Here's the break-even math for tech-worker incomes.
Concentrated Stock: Sell or Exchange Fund?
Exchange funds defer tax on a concentrated stock position for 7 years but cost 1%+ a year and require $500k+ minimums. Here's when they actually beat selling.
Which Account to Drain First
Taxable, then traditional, then Roth is a fine default at 65 and a costly one at 45. The bracket-filling alternative, with the 2026 tax math worked out.
Donate Stock, Not Cash
If you give to charity and hold appreciated stock, writing a check is the worst option. Donating shares skips capital gains tax and still deducts full value.
QSBS: The $10M Tax Break
QSBS lets qualifying startup stock skip federal capital gains tax on millions in profit, but exercise late or structure a buyout wrong and you lose it entirely.
529 Plans and the Roth Rollover
The old objection to 529s, what if my kid skips college, just got a lot weaker. The SECURE 2.0 Roth IRA rollover changes the entire funding calculation.
Should Your Side Gig Be an S-Corp?
Below about $50,000 in net profit, an S-corp election costs more than it saves. Here's the salary-split math, the real costs, and the breakeven number.