In order to ensure your financial plan meets your goals, it’s important to keep up to date with the latest federal numbers. For example, there are inflation adjustments, expiring tax breaks and changes to rules coming up in 2024 that could impact how much you can save, gift, deduct, etc. Taxpayers will need to be mindful, too, that numerous provisions from the Tax Cuts and Jobs Act are sunsetting at the end of 2025.

The original “SECURE” Act was approved into law in 2019. SECURE stands for Setting Every Community Up for Retirement Enhancement. It was aimed at preventing Americans from outliving their savings. SECURE 2.0 Act was enacted in December 2022 to finish the job by helping workers save more money for retirement and leave their savings untouched and untaxed for longer. Here are a few highlights you should be aware of.

Annuities have been around for many, many years and can be considered an investment product with an insurance-like attribute. They can be in accumulation mode or annuitization mode, they can be immediate or deferred, and they can be fixed or variable. They can also be treated very differently for tax purposes, depending on whether the annuity is held in a non-qualified or qualified account. Here’s what you need to know about these products, and how they may or may not fit into your overall financial plan.

Many people may be finding it easier to prepare their year-end tax returns since the Tax Cuts and Jobs Act was passed in December of 2017. At that time, the below-the-line standard deduction nearly doubled from $6,500 to $12,000 for individuals, and from $13,000 to $24,000 for those who were married filing jointly. This led to far more people taking advantage of the standard deduction at year-end, as opposed to itemizing deductions for things like medical expenses, home mortgage interest, state and local income tax, sales tax, and property tax, since the new standard deduction became larger than all of one’s itemized deductions combined for most taxpayers.

The experts of this show featured Stephen Krauss, CFA®, Senior Vice President, Senior Wealth Advisor, and Charles Cox, CFP®, Vice President, Planning Advisor.

What can I say – your rich Uncle (Sam) wants a cut of your financial well-being each and every year, and he’s quite serious about collecting His share. When and how he goes about doing so can take many forms, including weekly/bi-weekly payroll withholding, withholding from traditional Individual Retirement Account (IRA) distributions, estimated quarterly income tax payments, and/or a lump sum payment at the end of each year. One way or another, he’ll get what’s coming to him, for how else could we afford to keep this great Country running?

The American Rescue Plan Act of 2021 was signed into law on March 11. It aims to help about 158 million households get back onto their feet after a year-long struggle with the coronavirus pandemic.

Two emergency relief bills passed in 2020 in response to the COVID-19 pandemic will make this an unusual tax season for many taxpayers. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March, and a second relief package was attached to the Consolidated Appropriations Act, 2021, in December. The following provisions may affect many households when they file their personal tax returns for 2020. You might consult a tax professional who can explain the changes and recommend strategies to help reduce your tax liability for 2021.

It’s a busy time. But it’s not too soon to start thinking about taxes. Let’s take a look at 9 tax facts for tax-year 2020 along with tips that may save you money.

As of April 26, 2020, the Dow Jones Industrial Average was down approximately 20% from its February 12th all-time high - a significant recovery, after being down more than 38% from its all-time high on March 23rd. In the midst of this market decline - the fastest in history - now may be the perfect time to fund a Roth IRA and/or take advantage of a Roth IRA conversion. Establishing or adding to this type of account could help maximize wealth and add flexibility to one’s retirement, tax, and long-term estate plan.

We would like to provide you with an update on our commitment to maintaining all CNB Wealth Management functions during this period of uncertainty. CNB Wealth Management is committed to providing you with the exceptional service you have come to expect from us, throughout this challenging time.

President Trump signed the Tax Cuts and Jobs Act of December 2017 (TCJA) into law approximately two years ago, markedly changing the monetary benefits people derive from their charitable giving. The Federal Estate and Gift Tax Exclusions were increased, new laws involving standard and itemized deductions against personal income emerged, and the notion of Qualified Charitable Distributions (QCDs) was introduced. The provisions of the TCJA forced people to be more thoughtful about how, and how much, they choose to give.

On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015. One provision benefitting seniors that was made “permanent” is the Qualified Charitable Distribution (QCD). I say permanent with tongue-in-cheek, of course, since very little Congress does can ever be considered permanent, particularly when it comes to tax legislation.

Ask the Experts is a financial forum for education and advice as CNB’s experts answer your questions on financial topics that interest you.  The experts of this show featured Jason Fitzgerald, CFP®, Senior Vice President, Wealth Advisor

Many of the numbers coming out of Washington that impact our tax and retirement planning lives are different in 2019, just as they tend to be every year.