Recent Tax Changes and How to Ready Your Retirement Plan?

So recently, President Biden’s COVID-19 relief bill has been making rounds on media, and people are curious whether it would affect their retirement plan in any way. Well, it would.

The tax changes are crucial and, at the same time, too vast to cover. However, we have compiled the most significant ones from President Biden’s COVID-19 relief bill along with their impact on your retirement plan. Only then would you be able to ready your estate plans the right way.

The Expected Timing of Tax Changes

The congressional committees are yet to work on the bill to create an improved version of the bill. Fifty-one votes are needed for the budget to pass through the senate. The potential date of the provisions is said to be January 1, 2022.

Impact on the Individual Income Tax Rates

The income tax is expected to rise from 37 percent to its previous rate of 39.6 per cent for the people earning more than $400, 000.

Capital Gains and Dividend Tax Rates

Tor the taxpayers earning higher than usual citizens, tax rates are expected to elevate from 23.8 percent to 43.4 percent. The high-income taxpayers are the ones making $40,000 or more.

The tax would be applied on both the long-term capital gains and short-term capital gains.

Contact a Knowledgeable Attorney

The mentioned tax changes are bound to impact your retirement plan. However, you have still gotten time in your hand to address the changes and use them in your favour. A knowledgeable and experienced law attorney is all you need at this crucial time.

If you want further information or any help regarding President Biden’s COVID-19 relief bill, contact us right away. At Keystone Asset Protection and Estate Planning, we would be more than delighted to provide our services so that you can protect your assets and preserve your hard work.