New Tax Propositions To Watch
There has been a lot of conversation in the news regarding proposed tax law changes while we believe some changes are to come, nothing is certain yet.
We wanted to provide a brief overview of these proposals, as sometimes there may be incomplete or incorrect information in the media. Once we have clarity, we will share more information on how the tax changes will impact your personal situation in our next meeting.
Secure Act and Required Minimum Distribution
An item to watch is the progress of the SECURE Act 2.0. When the SECURE Act passed in December 2019, one of the key elements that impacted clients was the change in the Required Minimum Distribution start date from age 70 ½ to 72. The 2.0 version pushes back the required beginning date even further to age 73.
Other Tax Items
Some additional areas of the tax code that are being strongly considered include elimination of step up in basis that will severely impact families’ ability to bequeath wealth and reduction of the estate tax exemption from $11.7 million to as low as $3.5 million.
Further, an increase in capital gains tax and increase in personal and business tax brackets are being deliberated.
As mentioned, nothing is official yet, but our team will keep you posted on any development that may affected your situation.
If you have questions about any of these topics or if your individual situation, please reach out to us.