Key Takeaways
- Tax reform presents important changes for investors, while also preserving several areas some thought could change.
- 529s get more useful, while 401(k) plans remain mostly unchanged.
- Business owners might consider changing their form of business to take advantage of tax breaks for pass-through entities.
- Decisions regarding philanthropy before the year ends could also be an option.
Congress’ sweeping overhaul of the tax code presents a range of planning opportunities for investors. For individual taxpayers, the headline provisions include a lowering of the top tax rate to 37% from 39.6%. There could also be secondary benefits to investors resulting from lower corporate taxes. A deeper look at the new tax law, though, reveals equally important changes beyond tax rates, especially for business owners. Individuals are also potentially affected, especially when it comes to their retirement accounts, philanthropy and education savings accounts.
Written By: Jason Bortz
Published By: www.thecapitalideas.com