When you contribute to a 401(k) or IRA account, you are able to deduct that contribution amount from your current year’s income. Everyone likes that because it means you’ll pay less in taxes that year. But don’t forget that one day, you or your beneficiary will have to pay taxes on the money withdrawn from the retirement account. The link below shows just how much of a retirement account actually belongs to you.
Archives For Taxes
The market has had a very good year – in my opinion it is partly due to the expectation that we will see tax cuts this year. But what happens to those expectations if tax cuts are not passed?
This, from Treasury Secretary Steven Mnuchin…
“There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done,” Mnuchin said in the interview. “To the extent we get the tax deal done, the stock market will go up higher. But there’s no question in my mind that if we don’t get it done you’re going to see a reversal of a significant amount of these gains.”
Yet another reason why having a plan for dealing with the downside of the market is so important.
This is not investment advice. You should consult a qualified investment advisor before making investment decisions. Past performance does not indicate future results.