As the year ends, we turn our focus on our family, holidays, and the new year. But as the year comes to a close, we also start thinking about taxes, but are we really thinking about the taxes?
With the $3.5T spending bill coming, some of the provisions of expansion of healthcare, family leave, climate change initiatives, and more, comes the question of how this will all be paid.
We will be dealt the perfect storm, per-say, of the tax increases to pay for the spending bill and the end of the Tax Cut and Jobs Act signed by President Trump.
With the coming end of the tax bill in 2025, many taxes cut provisions, especially income tax cuts are due to expire. The first increase will come due for the 2021 tax bill and will steadily increase over time and by 2027, it is expected to affect the majority of Americans.
Some of the expected spending bill changes include multiple tax provisions expected to impact IRA's, 401K's, Roth accounts and other retirement savings vehicles.
At a high level, this bill represents a significant change in the way Washington views saving for retirement, with a goal of the legislation to avoid subsidizing retirement savings" once account balances reach a certain levels. It seems as if Washington is shifting away from incentivizing Americans from saving for retirement to penalizing those who have successfully saved,
We unfortunately can't control Legislative Risk that will be taking place with these tax bill changes. It will be important over the next 3 years to make financial moves to protect against these pending taxes. If you have any questions or would like to sit down with us.