Annuity Sales Consultant

As we near the end of the year, it is important to watch the pending tax code changes being discussed.  These changes could affect the planning you are doing with your clients and their overall financial plan.  

The American Jobs Plan provides $2.3 trillion in funding of infrastructure and is funded by increases in the corporate income tax.  The American Families Plan, which is currently sized at $3.5 trillion, will be the largest expansion of spending since the New Deal.  This bill will finance social programs such as universal pre-kindergarten, extended childcare, and expansion of the coverage provided under the ACA.

Some of the potential tax code changes include:

  • Ending 1031 Exchanges used by real estate investors to transfer gains on properties sold
  • Elimination of the step-up-in-basis for inherited capital assets
  • Increase the marginal ordinary tax rate from 37% to 39.6% (pre-Trump rates)
  • Establish a 3% excise tax on income in excess of $5 million
  • Marginal capital gains tax rate increase from 20% to 25%
  • Required distributions for large IRAs and 401(k) plans

All of these potential changes ultimately will make annuities more attractive given the unlimited tax deferral on gains during their accumulation period.  Give the experts at Wholehan Marketing a call today to see what annuity products can help your clients reduce taxes better their retirement plan!