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While it may sound like we’re talking out of both sides of our mouth, as in the Q 1 2024 Newsletter, we ran a full article about the possibility of new, mandatory RMD’s rules that will occur this year, it was with great confidence of our sources, and the need for planning that we ran that article.
Discouraging Tax Headlines – Just ignore them
After repeated discouraging headlines, this post is for not only you guys but us as well!
Frequently, new ideas are presented through our political system, and they catch the headlines and can be discouraging. The last two days my source emails have had some very discouraging new tax laws. While these new tax laws are just subject headlines, it’s a good thing to remind ourselves that until these are passed, which is very unlikely, these are just ideas and not actual laws.
The two headlines that caught my attention are: 1) Taxation of 401(k)’s, basically eliminating them as a saving technique. This is certainly discouraging, and would be totally against the helpful savings plans of our citizens, and therefore, very unlikely to be passed, but has caught several headlines in my inbox, will likely make its way into the more mainstream areas.
And 2) a follow up headline that once again hit my inbox three times in the last two days and garnered this post …. the thoughts of tax law change that will basically eliminate charitable contributions, and the creation of foundations and nonprofit organizations. OK, we know this sounds ridiculous, but after three repeated, subject matters in our news flow we wanted to get ahead of the possibility of a more mainstream print and remind our collective selves to ignore far fetched ideas….
Bottom line, ideas are great, and what makes progress…. but sometimes can be discouraging, until they’re put into law, let’s not worry about them and if you see something, hopefully you’ll remember this post! We are keeping an eye on all of this, and again this post is as much for us as it is you, so until it’s law, let’s ignore it!
Have a Great “Ignore the discouraging idea until it’s law” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
