Taxes and Retirement Income December 3, 2012Posted by shaferfinancial in Finance.
Tags: EIUL and taxation, taxe rate increases, taxes in retirement
If Congress does nothing this month here are the changes coming down the pike to taxes:
The top two income tax rates are scheduled to increase from 33% and 35% to 36% and 39.6 %, respectively.
The payroll tax is set to expire and go back to 6.2% from 4.2%.
Long term capital gains rates will go from 15% to 18% – 20%.
Currently taxed at 15%, qualified dividend income is scheduled to increase to the taxpayer’s regular income tax rate.
Fortunately, I had thought through taxes and have structured my accounts so this only gives me a slight increase in taxes from dividend income.
Money in my EIUL or any money I might take out is not taxed.
Berkshire Hathaway investment does not pay dividends so no tax increase at this time.
I do have some dividend paying stock that will incur a tax increase.
Does your retirement strategy take into account taxation?