As Congress continues its negotiations regarding changes to numerous components of the tax laws, Rosenthal Wealth Management CEO Larry Rosenthal is advising retirees that their retirement income management plans may need to be revised to ensure that money-saving adjustments are identified and ready for implementation once final tax law changes are enacted.
"It appears quite likely that significant changes will be made in many sections of the tax laws including income taxation, tax brackets, standard deductions, IRAs and estate and gift taxation. Wise money managers will prepare by identifying potential fiscally advantageous options as soon as possible," said Rosenthal.
"Some people will be paying more taxes in retirement than when they were working, depending on how they generate that income. If they are generating it from retirement plans, then the type of plan becomes critical in determining how much and at what rate they are taxed," he said.
Decisions regarding the timing of social security withdrawal are also important tax issues. Potential penalties for early withdrawal must be considered. In addition, social security withdrawals need to be aligned efficiently with withdrawals from other income sources to minimize the tax burden, Rosenthal said.
Pre-tax investments such as traditional IRAs and 401Ks may also be impacted by tax law changes. These investments benefit from tax deferred growth with taxes deferred until distributions are made.
Rosenthal also recommends that money managers pay attention to impacts on after-tax investments, most notably the widely used Roth IRA. These investments provide for tax-free and penalty-free withdrawal under certain circumstances for those who qualify.
As a much sought after financial advisor, Rosenthal has appeared regularly on Fox Business News and has been quoted in The Wall Street Journal, CNNMoney, U.S. News and World Report, CNBC's The Nightly Business Report, The Washington Post, USA Today, Money, Bloomberg, The Chicago Tribune, The Fiscal Times, Kiplinger's Retirement Report, Consumer Report's Money Advisor, The Washington Times, Financial Planning, Financial Advisor and others.
Rosenthal has been providing financial counseling for about three decades. He presently has offices in Mclean, Manassas, Stafford Virginia, and Baltimore, Maryland. Additionally, he has co-authored the book "Financial Success in the year 2000 and Beyond."
Rosenthal is also the host of "Making Money Sense," a radio show that has aired every Saturday morning on DC's WAVA from 9:00 - 10:00 a.m. since 2004 and is now nationally simulcast via satellite on SiriusXM channel 131.
Investment Adviser Representative(s) offering Securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC, a Broker/ Dealer & Registered investment Adviser. Cetera is under separate ownership from any other named entity.
Rosenthal Wealth Management Group is not a subsidiary of nor controlled by Cetera.
Press contact: Robert Johns, 703-955-6622
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