Investing can provide additional income, but it’s essential to understand capital gains and tax breaks to be more efficient.
Investments are essential to building and protecting your assets. The additional income you earn can also affect the amount you pay in taxes. To minimize this impact, you’ll have to develop a strategy that considers both cash from interest and sales, i.e., “investment gains,” and the relevant taxes.
Before you begin, however, you should take a moment to review the following:
1 Withdrawals may be subject to regular income taxes and, if made prior to age 59½, may be subject to a 10% IRS penalty.
This material is for informational purposes only. Neither New York Life nor its agents provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.