Some 401(k) plans allow investors age 59½ to take a non-hardship 401(k) withdrawal, providing the option to transfer savings to an IRA without penalty.
A Biden administration proposal calls for a tax hike for corporations. If approved, it may impact how certain business owners structure their business.
Challenges can emerge for investors who have not planned for the impact of taxes on retirement income.
Tax season can provide a good reminder that 529 plans offer significant tax benefits for families looking for fund college education.
Investors may want to consider certain strategies to hedge against the risk of higher taxes, including using a Roth IRA conversion.
Potential changes to stepped-up cost basis rules may emerge as lawmakers consider federal revenue needs.
Most advisors are closely monitoring tax policy as it is not yet clear what proposals around estate taxes will be introduced on Congress’s agenda this year.
In addition to broad relief measures, the latest pandemic relief bill includes several tax changes that could impact planning.