Planning for a Low-Tax, High-Deficit World
It’s time to maximize deductions and go light on Treasuries.
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It isn’t often that rushing makes sense in retirement planning. But when it comes to converting your tax-deferred IRA to a tax-free Roth one, Ed Slott thinks now may be the exception. “Tax rates may never get lower in your lifetime than in 2017,” says the accountant and creator of the personal finance website irahelp.com. “Now would be the time to strike.”
Donald Trump has said he wants to lower the top income tax rate from 39.6 percent to 33 percent. However, if history is any guide, the change won’t be permanent, creating a potentially narrow window of opportunity. Savers can take a number of actions this year to cash in.