Kudos for discussing the fact that the bracket Income Thresholds get inflation adjusted each year, and that when we return to the 2017 Percentage Brackets, the threshold borders won't be exactly as they stood in 2017. I watch a LOT of financial YT channels and it amazes me that no one else discusses this. Well done!
Thank you for a great video and presentation. Your table was very effective! I'm almost done converting my pre-tax funds in my 401k account. Your arguments and recommendations are valid. Thank you again!
You guys have the same conclusion as David Mcknight. Better convert now rather than chance it that rates won't go up. I agree with both of you. I am converting over 900k over the 4 years 2022,2023,2024, 2025. I am glad I started it when I did. Maybe I should have done some earlier , but glad I did what I did.
@@tr3vorb438 Yep, because POS Biden is beholden to all of the CA and NY high income elites who want their SALT (State and Local Tax) deductions put back so the rest of us can subsidize their Federal Income Tax bill!!! #Trump2024
Another thing you forgot to mention is that when this law sunsets the standard deduction of $14,600 single, $29,200 married will be cut in half. So retirees will be paying more taxes on their withdrawals and social security.
Great video for tax planning. I have been maximizing my Roth conversion since I retired and will through 2025. Another consideration besides the higher rates is that the high standard deduction will get reset and many will have to start itemizing again. If you are mortgage free, and live in a tax free state, you will likely see your taxable income increase due to the lower standard deduction.
Agreed, this is something that I think will affect the amount of taxes more so than the actual tax rate increase. Most retirees don’t have still a mortgage therefore very little deductions to help reduce taxes.
@@larryjones9773 the law expires Dec 2025. Congress will have to pass a new law to continue the current law or it goes back to pre 2017 tax brackets. Congress must act or we get higher taxes.
@@dufrenesguideservice8398 Yes, I know. I was just making the point if Congress doesn't act, then Exemptions will return, as well. Exemptions reduce taxes, but overall, taxes will increase.
@@bradb613congress could just spend as much as they take in and we would not need to raise taxes. But they waste and fund dumb things so they can get re-elected. Both sides are complacent at wasteful spending.
Was the AMT tax mentioned? Not indexed to inflation along with sale of primary home exclusion, etc... what would a 30% flat tax for all corporate (including FICA) & individual do?
Like the board instead of a screen, must be getting old. You can create a roll over window between retirement and SS. Taking SS later is best longevity insurance, but also gives bigger window. Nice window after retirement but before IRMA (63) also. I also like a roll over as a hedge against a bear. I will not roll over any this year or probably next as still working, but I will do if the market tanks - move more for less basically. Thanks
Wouldn’t good advisors see this tax law in 2018 and position clients to follow a best course to 2026? Sure see lots of talk about making conversions quickly because the pending change. It’s rare to see tax law extended out years. Thanks for the nice breakdown of what we already knew for more than half a decade.
Any reason why you haven’t discussed using life insurance to give to the kids and gifting the qualified money to charity in a non-advised donor fund? Then no one pays tax on the bulk of the money. Pull amounts from QM to pay premium but not more. When RMD time happens use the QCD to gift the excess RMD. I have done this a number of times with my clients.
And lack of compromise in this case aids those who need some excuses to raise taxes across the board. It's easier to do that than whine about the need for broader tax increases on the middle class for national debt.
They won’t deal with SS until the last minute. Nobody wants the credit for the debacle of a bad deal that will become. They will pass something in the middle of the night without time to read it and we will accept it as usual because we are powerless against these elites who care about noone but themselves. Both parties have become a Uniparty and are only concerned about enriching themselves.
The first meeting is no charge. After that either $150/hour or $1000 for a financial plan. I prefer ZOOM. To schedule, contact Tomasina or Tanya at 919-535-8261.
Keep workin' baby! I retired at 52 as they kept wanting more and more. So glad I did. 8 years ago I retired and haven't paid a dollar in income tax. Keep workin'. Folks like me love y'all. Show me more free money! Love love love it!!!!!!!!!!!!
Changing rates does not definitely mean a higher tax bill. Many people were hurt by the increase in the std deduction and the elimination of the personal exemption in 2017. While some will see higher taxes if there are no changes in 2026, some people’s tax bill will decline.
Please explain how some people’s tax bill will decrease when tax brackets are increased and standard deduction is cut in half when this goes into effect. Personal exemption was $2000 per person each household, even if you had 5 kids and a spouse that only $14k in exemptions+ higher tax brackets, the $29,200 married standard deduction is more than the exemptions. Please educate me on how the exemption would be better.
Some of TH-cam stuff is downright funny! So yeah income tax. Oh wait, zero tax on zero income. Until conservatives work hard for minimum wage there is no solution.
![ตีสิบเดย์ [FULL] | อาจารย์โอเล่ ญาณสัมผัส ผ่าดวงคนดัง ประเทศไทยจะเป็นยังไงหลังจากนี้!](http://i.ytimg.com/vi/gszT2O76fL4/mqdefault.jpg)
Kudos for discussing the fact that the bracket Income Thresholds get inflation adjusted each year, and that when we return to the 2017 Percentage Brackets, the threshold borders won't be exactly as they stood in 2017. I watch a LOT of financial YT channels and it amazes me that no one else discusses this. Well done!
To think we rebelled over a 2% tax rate on tea...
Thank you for a great video and presentation. Your table was very effective! I'm almost done converting my pre-tax funds in my 401k account. Your arguments and recommendations are valid. Thank you again!
Congress has their own interests in mind. That’s a starting point.
You guys have the same conclusion as David Mcknight. Better convert now rather than chance it that rates won't go up. I agree with both of you. I am converting over 900k over the 4 years 2022,2023,2024, 2025. I am glad I started it when I did. Maybe I should have done some earlier , but glad I did what I did.
FYI~. The bill was signed into law by President Donald Trump on December 22, 2017.
And president Biden has promised to let it sunset if he’s re-elected 😳
@@tr3vorb438 Yep, because POS Biden is beholden to all of the CA and NY high income elites who want their SALT (State and Local Tax) deductions put back so the rest of us can subsidize their Federal Income Tax bill!!! #Trump2024
No he will not let it sunset
@@Satjr35031 a simple search will inform you of Biden's plans to let them sunset.
@@tr3vorb438He has promised to increase the capital gains tax to 45%.
Another thing you forgot to mention is that when this law sunsets the standard deduction of $14,600 single, $29,200 married will be cut in half. So retirees will be paying more taxes on their withdrawals and social security.
Great video for tax planning. I have been maximizing my Roth conversion since I retired and will through 2025. Another consideration besides the higher rates is that the high standard deduction will get reset and many will have to start itemizing again. If you are mortgage free, and live in a tax free state, you will likely see your taxable income increase due to the lower standard deduction.
Agreed, this is something that I think will affect the amount of taxes more so than the actual tax rate increase. Most retirees don’t have still a mortgage therefore very little deductions to help reduce taxes.
Exemptions will return as well in 2026, which reduce taxable income.
@larryjones9773 we'll see
@@larryjones9773 the law expires Dec 2025. Congress will have to pass a new law to continue the current law or it goes back to pre 2017 tax brackets. Congress must act or we get higher taxes.
@@dufrenesguideservice8398 Yes, I know. I was just making the point if Congress doesn't act, then Exemptions will return, as well. Exemptions reduce taxes, but overall, taxes will increase.
Really helpful advice - thank you for putting this together 🙂
Very informative! Thank you.
ALL taxes State Federal and local will increase significantly in the years moving forward.
as they should
@@bradb613congress could just spend as much as they take in and we would not need to raise taxes. But they waste and fund dumb things so they can get re-elected. Both sides are complacent at wasteful spending.
Great content, thanks, Cardinal Advisors!
Was the AMT tax mentioned? Not indexed to inflation along with sale of primary home exclusion, etc... what would a 30% flat tax for all corporate (including FICA) & individual do?
Like the board instead of a screen, must be getting old. You can create a roll over window between retirement and SS. Taking SS later is best longevity insurance, but also gives bigger window. Nice window after retirement but before IRMA (63) also. I also like a roll over as a hedge against a bear. I will not roll over any this year or probably next as still working, but I will do if the market tanks - move more for less basically.
Thanks
Wouldn’t good advisors see this tax law in 2018 and position clients to follow a best course to 2026? Sure see lots of talk about making conversions quickly because the pending change. It’s rare to see tax law extended out years. Thanks for the nice breakdown of what we already knew for more than half a decade.
Never forget the Vegetable in Chief is coming after your unrealized capital gains as well.
as he should
You did show HOH. HOH got screwed with the 2017 cut.
Any reason why you haven’t discussed using life insurance to give to the kids and gifting the qualified money to charity in a non-advised donor fund? Then no one pays tax on the bulk of the money. Pull amounts from QM to pay premium but not more. When RMD time happens use the QCD to gift the excess RMD. I have done this a number of times with my clients.
It was a calculated long-term tax cut for the rich and a short term tax cut for the rest of us. It is also the main reason our deficit is so high.
And lack of compromise in this case aids those who need some excuses to raise taxes across the board. It's easier to do that than whine about the need for broader tax increases on the middle class for national debt.
Taxes let's start working on saving social security also members of congress.
They won’t deal with SS until the last minute. Nobody wants the credit for the debacle of a bad deal that will become. They will pass something in the middle of the night without time to read it and we will accept it as usual because we are powerless against these elites who care about noone but themselves. Both parties have become a Uniparty and are only concerned about enriching themselves.
It's my money so it isn't "Free"
This may not be just income, it may be your long term investments too. no more discount taxes.
good
Are you ok😮
@@bradb613 who pee’d in your cheerios. Mr. Negativity
Can I ask your fee for telephone advice?
The first meeting is no charge. After that either $150/hour or $1000 for a financial plan. I prefer ZOOM. To schedule, contact Tomasina or Tanya at 919-535-8261.
@@CardinalAdvisors That you provided that info transparently and out in the open is fantastic!!! You guys are awesome :)
Keep workin' baby! I retired at 52 as they kept wanting more and more. So glad I did. 8 years ago I retired and haven't paid a dollar in income tax. Keep workin'. Folks like me love y'all. Show me more free money! Love love love it!!!!!!!!!!!!
I don't think it was a "significant tax cut for everybody"....the majority of that CUT went to very wealthy people.
as always fuck rich people
exactly!
New that the money was not free
Changing rates does not definitely mean a higher tax bill. Many people were hurt by the increase in the std deduction and the elimination of the personal exemption in 2017. While some will see higher taxes if there are no changes in 2026, some people’s tax bill will decline.
I beg to differ but that is not correct
Please explain how some people’s tax bill will decrease when tax brackets are increased and standard deduction is cut in half when this goes into effect. Personal exemption was $2000 per person each household, even if you had 5 kids and a spouse that only $14k in exemptions+ higher tax brackets, the $29,200 married standard deduction is more than the exemptions. Please educate me on how the exemption would be better.
Or cut
Some of TH-cam stuff is downright funny!
So yeah income tax.
Oh wait, zero tax on zero income.
Until conservatives work hard for minimum wage there is no solution.