While 2024’s changes are mostly refinements, 2025 could be a big year for tax shifts. Here’s what’s on the table:
✅ Tax Brackets May Go Up – If Congress doesn’t act, the 2017 tax cuts expire in 2026, meaning higher tax rates for most filers.
✅ Estate Tax Exemptions Could Drop – The current $13.6M exemption may shrink to around $5-6M, meaning more estates could face taxes.
✅ More Roth Retirement Plan Requirements – The government is pushing Roth-style savings (taxing money upfront) rather than deferring taxes. Expect more policies that encourage paying taxes sooner rather than later.
✅ Possible Capital Gains Tax Adjustments – High-income earners could see higher capital gains taxes if new policies take effect.
✅ More Retirement Distribution Changes – With an aging population, we may see further tweaks to RMD ages and contribution rules.
Final Thoughts: How to Make 2024 Work for You
Rather than waiting to see what happens in 2025, 2024 is a golden opportunity to take control of your tax situation. Here’s what you can do now:
✔️ Max out your IRA or 401(k) contributions while limits are high.
✔️ Consider Roth conversions while tax rates are still favourable.
✔️ Think about estate planning before possible changes in 2026.
✔️ Use tax-loss harvesting to manage investment gains efficiently.
