What tax consequences be aware of regarding accounts

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A prospective client has come to you for some expert tax planning advice. He is thinking about investing in a taxable bond fund and a municipal bond fund and wants to know what he should be considering from a tax planning perspective when comparing the two investment alternatives.

He is also considering becoming a silent partner in a business that is determining whether to operate as a partnership or an S-corporation and he wants you to help him explain how both of these business structures could affect him from a tax planning perspective.

Problem 1: The client has both a Roth IRA and a 529 plan set up that each have balances of $50,000. What tax consequences should he be aware of regarding each of these accounts when it comes time to decide where to withdraw money from to pay qualified higher education expenses?

Reference no: EM132765285

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