When to Consult a Professional

Tax laws change frequently, and applying abstract rules to your specific life requires expertise. You should hire a Certified Public Accountant (CPA) or a fee-only fiduciary financial planner in the following scenarios:

• Executing a Roth Conversion Strategy: If you want to move money from a Traditional IRA to a Roth IRA, you must pay taxes on the converted amount in the year you do it. A professional can help you calculate exactly how much to convert each year to avoid spiking your tax bracket or triggering higher Medicare Part B premiums (IRMAA).
• Selling a Highly Appreciated Primary Residence: If your home has appreciated by more than the $250,000 (single) or $500,000 (married) exemption limits, a tax professional can help you identify eligible home improvement expenses that increase your cost basis and reduce your taxable gain.
• Relocating to a New State: Moving across state lines changes your tax landscape entirely. A professional can advise you on how your new home state taxes retirement income, municipal bonds, and Social Security.
• Setting Up a Reverse Mortgage: Because a reverse mortgage impacts your home equity and your estate, you should review the long-term projections with a fiduciary who does not sell reverse mortgages to ensure it aligns with your overall financial plan.