A recent MarketWatch article highlighted two recent tax initiatives that could affect the wealthy.
- The SECURE Act would eliminate big tax advantage for IRA beneficiaries. Few noticed when the House of Representatives in May overwhelming passed the imaginatively named “Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.” The vote was 417-3. Senate passage was thought to be a mere formality — until Senator Ted Cruz (R-Texas) announced opposition, because the bill no longer includes a provision that would allow tax-free Section 529 college savings account withdrawals to cover homeschooling costs.
- The Tax Cuts and Jobs Act (TCJA) drastically increased the unified federal gift and estate tax exemption from $5.49 million in 2017 to $11.4 million for this year, with inflation adjustments for 2020-2025. But the exemption is scheduled to revert back to the much-lower pre-TCJA level in 2026. Depending on political developments, that could happen much sooner.
Read the full article here .