With the election behind us and a new administration in office, we must discuss what economic policy changes lie ahead, and how that may impact your financial future. First off, there is the pending (or not) sunset of the 2017 Tax Cuts and Jobs Act (TCJA). Trump has stated his intention to extend the provisions of the TCJA, but the extent of what, when, and how much is still uncertain. There remains a looming challenge of how to mitigate the large annual federal deficits and a large debt – over 100% of GDP. And extending the TCJA will increase our deficit by approximately $4.5 trillion!
While none of us have a crystal ball, I would like to help you feel comfortable that you’re prepared for what may, or may not, materialize through Congressional developments. Pending TCJA changes that could have a significant impact on your financial plan include:
- Tax Rates
- Estate & Gift Tax Exclusions
- Deductions (SALT, Itemized & Mortgage Deduction Limits)
- ATM Exemption Limits
- Qualified Business Interest (QBI) Deduction
Now Is a great time to make sure your financial and estate plans are up-to-date and account for the impact of any tax law changes that may be enacted. Please click here to set up an appointment if you would like to discuss:
- how to future-proof your financial portfolio to weather different market conditions without undermining the ability to fund your retirement
- the implications of different policy decisions on your estate & legacy planning, and when to take action