What is Stealth Tax, and how can I plan for it?
At our recent Charter Masters Training in November, Ed Slott, predicts that income tax rates for many Americans could exceed estate tax rates, especially when state taxes are considered.
What is a Stealth Tax? Ed Slott maintains these taxes are below the radar. These taxes raise taxes without raising your tax rates, and they began in 2013.
Who will Stealth Taxes Affect?
Most of Us!
The 5 New and Returning Stealth Taxes include:
1. The Phase Out of personal exemptions
2. The reduction of itemized deductions
3. Increased tax on net investment income
4. Increased tax on earned income including salary and self-employment income.
5. The decrease in deductible medical expenses.
There is no Quick Fix to this problem. Ed Slott maintains that your key strategy should be to create a long-term solution.
To plan for the long term, it becomes more important to plan with the end in mind, which will allow you to have more money in your pocket than in Uncle Sam’s.
Visit www.irahelp.com for more information. Ask your questions, and I will find the answers you need to help you maximize your retirement income and lower the effects of Stealth Taxes!
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Dee is a Charter Masters IRA Advisor with Ed Slott's IRA Advisory Group since 2004.