Returning Value Blog

How much can you and your employees contribute to your 401(k)s or other retirement plans next year? In Notice 2024-80, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for retirement plans, as well as other qualified plans, for 2025. With inflation easing, the amounts aren’t increasing as much as in recent years.

If you own a small business with no employees (other than your spouse) and want to set up a retirement plan, consider a solo 401(k) plan. This is also an option for self-employed individuals or business owners who wish to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan.

For high-net-worth individuals, the art of wealth transfer extends beyond merely providing financial assistance to future generations; it is about strategically positioning the next generation for personal success. Unfortunately, it also requires navigating a complex landscape of income, gift, and estate taxes. 

If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions.

We May Never See a Better Environment for Transferring Wealth … Here’s Why

It may seem that there will always be time to address estate planning. However, a unique opportunity to maximize the amount of wealth that can be tax-efficiently passed to heirs will expire at the end of 2025. Furthermore, legislation could curb lifetime exemption limits even sooner. The opportunity is even more pressing because the current market downturn represents an especially advantageous time to optimize your taxable estate before markets eventually recover.

With the end of 2021 coming into focus, we have many areas of uncertainty to navigate on the healthcare, economic, and political front. As we encourage our clients to continue thinking and acting long term, there are pockets of near-term financial planning opportunities to consider as the calendar rolls toward year-end.

The greatest wealth transfer in U.S. history is underway. Americans age 70 and older hold an estimated $35 trillion, according to Federal Reserve data.^[1] This means that over the next several decades, millions of Americans will be contemplating how to distribute their life savings to heirs, charities, and other beneficiaries. To make matters even more interesting, wealthy Americans also face the potential for a once-in-a-generation increased tax liability. The Biden Administration has proposed increasing taxes on wealthy Americans to raise revenue for various spending initiatives.

During last year's campaign, then-candidate Joe Biden stated that he would use higher taxes to partially fund various spending priorities if he were elected president. Now that the Democrats control the White House and both the House and Senate, tax increases could be on the horizon. Details of the Biden administration's proposed tax changes are gradually coming into focus, and on March 31, President Biden unveiled his infrastructure spending plan, which will be funded in part by an increase in the corporate tax rate to 28%.

On January 20, 2021, the COVID-19 emergency relief measures were extended on all federal student loans owned by the U. S. Department of Education (ED) through at least September 30, 2021.

If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages.