As tax season 2024 comes to a close, it’s time to look ahead and prepare for potential future tax increases looming on the horizon. Provisions from the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire by the end of 2025, meaning tax rates could rise in 2026. Here’s what you need to know to safeguard your finances:
Know this Regarding Future Tax Increases
Expiration of Tax Cuts: The TCJA lowered individual tax rates, doubled the standard deduction, and shielded most estates from federal estate taxes. However, if Congress fails to extend these provisions by the end of 2025, tax rates will automatically revert to 2017 levels, potentially impacting your tax bill.
Federal Estate Tax: The expiration of TCJA provisions could reduce the estate tax exemption, exposing more estates to federal taxes.
Tax on Retirement Withdrawals: Higher tax rates could make withdrawals from traditional IRAs and tax-deferred accounts more expensive. Consider converting some funds to a Roth IRA to shield your savings from future tax hikes. However, be mindful of potential consequences such as high-income surcharges and taxes on Social Security benefits.
Tax Planning Strategies: Don’t make hasty decisions regarding potential tax increases. Instead, plan carefully and consider your long-term financial goals. Remember that your personal tax rate could decline in retirement, potentially offsetting any increases in overall tax rates.
Stay Informed: Stay updated on tax law changes and consult your CPA and RFG Wealth Advisory to develop a tax-efficient strategy tailored to your individual circumstances. By planning ahead, you can confidently protect your financial well-being and navigate potential tax changes.
Prepare for a Successful Financial Future
Prepare for the future and safeguard your financial future by staying informed and proactive in your tax planning efforts.
At RFG Wealth Advisory in Argyle, Texas, we employ many financial planning strategies. These strategies are designed to maximize income and minimize taxes for our clients. We also work closely with your CPA and other professionals to ensure everyone is working together to create the best possible plan for you.
Our exclusive RFG Wealth Advisory Blueprint process helps discover all the ways your financial life can be easier, maximizing your confidence as a savvy investor.
Financial Success Doesn’t Happen by Chance.
Contact lead advisor Chris Robinson, ChFC, at our office, 940-464-4104, to schedule a time to discuss your current questions.
RFG Wealth Advisory in Argyle, Texas, is an independent, fee-only Registered Investment Advisor firm. We always puts our client’s interests first. We have a transparent, simple fee structure that’s easy to understand.
Please don’t wait until it’s too late to secure your financial future. Let the RFG Wealth Advisory team be your guide to financial success. Call us Today! 940-464-4104.
Investment advice is offered through RFG Wealth Advisory, a Registered Investment Advisor.
Disclaimer
Financial Success Doesn’t Happen by Chance.
Contact lead advisor Chris Robinson with RFG Wealth Advisory in Argyle, Texas to discuss your questions.
RFG Wealth Advisory is an independent, fee-only Registered Investment Advisor firm in Argyle, Texas. At RFG Wealth, our fiduciary duty ensures your interests always come first, and we maintain a transparent fee structure for your peace of mind. Contact us today!
Investment advice is offered through RFG Wealth Advisory, a Registered Investment Advisor.
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Chris Robinson is the president of RFG Wealth Advisory, which he founded in 1995. He is a current resident of Argyle and native of Denton, Texas.
