It also explains how to determine and report gains and losses on the disposition of investment property and provides information on property trades and tax shelters.
Also keep the forms you receive showing your investment income (Forms 1099-INT, Interest Income, and 1099-DIV, Dividends and Distributions, for example) as an important part of your records. The NIIT is a 3.8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status.
(For information on who owns the funds in a joint account, see These rules apply both to joint ownership by a married couple and to joint ownership by other individuals.
For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's SSN.
Every few years afterward, update your financial plan and consider working with an advisor to update spending rate.
As you move through retirement, the amount you can spend each year as a percent of your portfolio may change.
In up years, you may feel freer to spend a little bit more.