2022 Tax Changes
 
Notifications
Clear all

2022 Tax Changes

1 Posts
1 Users
0 Likes
873 Views
(@hines202)
Reputable Member Customer
Joined: 3 years ago
Posts: 331
Topic starter  

I think it's a pretty safe bet to check the box that will assume the Tax Cuts and Job Acts tax cuts will expire in 2025, but with the new proposed legislation it seems that some of those things will be moved up, along with new tax rates/brackets, possibly the elimination of backdoor and mega backdoor Roths, and down the road Roth conversions altogether (2032).

I have a weekend task penciled in to explore how to start modeling some of this in PRC since if it passes, it's going to kick off a frenzy for my clients, since a lot of the new tax law will be put in place for 1/1/2022 (just over three months from now!). That means the timetable for Roth conversions may have to move up to be done by December 31 of this year, for folks who anticipate being in higher brackets as of 1/1/2022.

If anyone has started doing that modeling in PRC yet, let me know so I can save some trouble/work. I haven't fired up PRC yet but I'm pretty sure the capabilities are there to anticipate higher tax rates.

Yes, I know this isn't law yet and it's being negotiated but a bunch of these changes have consensus from both sides of the aisle so they're pretty certain. I just want to be ready to game it out for my clients on day one, so want to start experimenting and know the modeling now to be ready. Please keep responses non-political 🙂


   
ReplyQuote
Share: