Episode Summary:

In this episode of Navigating Abundant Retirement Radio, Carol Dewey from Perpetual Wealth Financial dives into the implications of the Tax Cuts and Jobs Act of 2017 and its potential expiration at the end of 2025. Carol discusses the major tax changes introduced by the Act, including adjustments to tax brackets, the standard deduction, and estate tax exemptions. She also explores strategies for managing retirement withdrawals, including tax considerations and charitable donations from IRAs. Listeners are encouraged to consult with financial professionals to tailor strategies to their individual needs.

Key Takeaways:

• The Tax Cuts and Jobs Act of 2017 introduced significant tax changes, some of which are temporary and set to expire at the end of 2025.
• Tax rates and deductions may revert to pre-2018 levels if Congress does not act to extend or modify the legislation.
• Effective retirement withdrawal strategies can help manage tax implications, including avoiding early withdrawal penalties and considering Roth IRA conversions.
• Charitable donations from IRAs can be a tax-efficient way to meet Required Minimum Distributions (RMDs) and support charitable causes.

Quotes:

• "If you're in one of those brackets, your taxes will go up at the end of 2025 unless Congress takes additional measures."
• "You should closely monitor how Congress handles the legislation in the months before its possible expiration and review your financial strategy with your financial services professional."
• "Dedicating a portion of your retirement savings to an after-tax Roth IRA may help supply you with tax-free investment growth and tax-free withdrawals during your retirement."

Timestamps:

• (00:17) Overview of the Tax Cuts and Jobs Act of 2017
• (01:28) Detailed discussion on tax rate changes and deductions
• (04:11) Impact on the Affordable Care Act and estate taxes
• (05:23) Hypothetical scenarios and the importance of monitoring legislation
• (06:37) Tax strategies for retirement withdrawals
• (07:45) Early withdrawal penalties and RMDs
• (10:01) RMD age changes and tax strategies
• (11:14) Charitable donations and Roth IRAs
• (13:21) Further tax-saving strategies
• (14:17) Risks and considerations for Roth accounts
• (15:23) Investment tax considerations and charitable donations

Referenced Links:

• Tax Cuts and Jobs Act - Investopedia
• How to Pay Less Tax on Retirement Account Withdrawals - US News
• How to Donate to Charity from Your IRA - US News

Please leave us a rating and a review on Apple Podcast.

Connect With Carol:

• Website
• LinkedIn