Conscientious Financial Planning and Retirement Income Management | 201-741-9528
from Lonier Financial Advisory LLC, Osprey, FL

Impact Of The New Tax Law On Financial Planning And Retirement

Impact Of The New Tax Law On Financial Planning And Retirement

  • Current strategies for tax optimization by asset location in after-tax, pre-tax, and tax-free (Roth) accounts are unchanged.
  • Because of lower rates, retirement savers will have more after-tax money in 2018, but pre-tax deductible contributions to 401(k)s, 403(b)s, and IRAs will have a smaller effect on taxes due.
  • Those working in retirement as sole-proprietors or LLCs can deduct 20% of their business income in 2018, but their full income will count against the Medicare Part B premium threshold.

The new year brings a package of changes to federal income tax laws that go into effect immediately. Here are the salient changes that impact financial planning and retirement.

Unless you’ve been absorbed in all the runner-up bowl games, you’re likely aware the standard deduction has about doubled to $24,000 for joint filers, but that there are no longer $4,050 exemptions for you, your spouse and your children. There is a new $2,000 per child tax credit with a higher phase-out at $400k AGI, and the age 65/blind/disabled additional deductions still apply.

Click to continue reading here.

Leave a Reply

Your email address will not be published.