The Tax Cut & Jobs Act lowered marginal tax rates and those rates revert to higher levels in 2026. This means we may never see tax rates this low again. It also means now is a great time to put money into tax-free vehicles.
By contributing to a tax-free vehicle, your contribution will only be taxed at today’s low rate – literally increasing your investment. You can also restructure your transactions in the most advantageous way (tax arbitrage) in order to pay the least amount of tax.
Moreover, if you are in your 50’s, tax planning now will reap good rewards later. Research by firms like Vanguard, Morningstar, and LifeYield, show that actively engaging in tax planning can boost your after-tax income in retirement by a meaningful amount. And there are many opportunities out there.
Call and make an appointment with us today. We are tax specialists. With the new tax laws, we can help you pay the least amount of tax.