The Redditor, possessing $2.5 million in a 403(b) and $4 million in taxable accounts, is exploring ways to optimize where to allocate T-bills while minimizing their tax burden. With living expenses of $125k, cash flow from $50k in dividends and $30k in T-bills provides a framework for a tax-efficient withdrawal strategy. Given the 2025 capital gains tax rates, the couple can realize up to $126,700 in tax-exempt long-term capital gains due to the standard deduction, highlighting the effectiveness of understanding the tax code.
The Redditor has a brilliant plan to minimize taxes using long-term capital gains and the standard deduction, allowing significant tax-saving opportunities.
Through strategic financial management, the Redditor can incur up to $126,700 in long-term capital gains without incurring federal taxes due to their tax situation.
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