• Retirement and Annuity Advisor Jennifer Lang

Concerned about rising taxes? Here are 3 things to think about.



1. Being a beneficiary of your parent’s IRA or 401(k) could be costly.


Before tax laws changed in 2019, Americans didn’t worry too much about passing on what was left in their retirement accounts to their adult children or non-spouse heirs, since these heirs were able to stretch taking withdrawals over their lifetime. Currently, for most non-spouse beneficiaries, these inherited retirement accounts must be completely liquidated within 10 years. This may not be ideal if the balance transferred is significant, and the heirs are in the top income brackets.


2. Your heirs could lose a big part of their inheritance due to taxes.


The anticipated changes to the federal estate and gift tax laws reach beyond the pocketbooks of the affluent and into those of middle-class Americans. The Senate proposes to reduce the estate and gift tax exemption from $11.7 million to $3.5 million.1 And, there’s talk of taxing unrealized capital gains. Knowing that the estate tax is levied on property transferred to heirs at death, such as real estate, stocks, cash and other assets,2 think of the tax implications for adult children who inherit a parent’s home.


3. Now may be the time to diversify.


Federal income and capital gains taxes are expected to rise. So are taxes at the state level. Rather than wait and see how these tax changes could impact your income and investments, it’s wise to consult a tax professional. Diversification strategies can help you reduce your tax risk and protect your assets — now and in the future.

Start protecting your assets and your loved ones.


At Jennifer Lang Financial Services, we can help. Let’s discuss how Indexed Universal Life insurance and annuities can help you diversify and gain tax efficiencies to protect your income, investments and legacy assets.