Today's Hack

The Tax Foundation released a detailed analysis of Biden's tax proposals and this week we look at a few of the items that caught Phil's attention. Are there tax changes ahead? Anything different you should do with your plan now? We'll try to help you answer those questions today.

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Show Notes For This Episode

Today’s Hack:

Are there tax changes ahead? Anything different you should do with your plan now? Let’s look a little deeper into the next president’s tax proposals.

Click the timestamps below to jump ahead in the episode…

Video Version:

Other Retirement Facts:

On today’s episode of the podcast, we review Biden’s proposed tax plan. It hasn’t been passed yet, but it’s helpful to look down the line and see what you might need to prepare for.

Do you know what may happen with Social Security? How will things change for high income earners? Will this look similar to Obama’s plan? Phil goes on to explain what you need to know when it comes to long-term capital gains as well as the step-up in basis that is often overlooked. How does this potentially impact you as well as your heirs?

Other things that may change include the estate tax, the first-time homebuyer’s tax credit, the corporate tax rate, and equalizing the tax benefits of traditional retirement accounts. Each of these carry pros and cons, whether you feel their impact directly or indirectly.

While the SECURE Act was only recently passed, there’s already talk of revisions being made to it. If the RMD age is pushed back, what will that mean for your portfolio? What about your heirs? Are you utilizing the rules to your best advantage? You can’t change the rules, but how can you work them to your benefit?

There are a lot of unknowns still. Biden’s plans haven’t been passed yet, so we’ll see what actually happens. In the meantime, it’s important to have a financial plan that works best for you.

Listen to the entire episode or click on the timestamps below to skip ahead.

0:20 – Let’s review Biden’s tax proposals.

1:39 – What will the Social Security tax look like?

3:05 – What will change for high earners?

4:08 – What will happen with long-term capital gains?

4:45 – The step-up in basis may be eliminated.

6:39 – Under the new proposal, what added taxes would we have?

10:45 – At what point does the estate tax come into play?

13:24 – What would the first-time homebuyer’s tax credit be?

14:24 – The corporate tax rate would go back.

16:52 – What does it mean to equalize the tax benefits of traditional retirement accounts?

20:33 – Will the SECURE Act face potential revisions?

Thanks for listening! We’ll be back with another episode next week.

Resources Mentioned on this Episode:

Download the Tax Foundation’s October 2020 Report

A Quotable Moment:

The big piece I think to really pay attention to is the capital gains tax. That step-up in basis I fully expect that to go away at some point, it’s always been too good to be true.

-Phil Putney

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