This week in his column for ThinkAdvisor, Joe Elsasser, CFP®, talks about how some elements of President Biden's tax plan could significantly impact retirees. In the article he outlines four specific proposals that advisors should prepare for and how to plan accordingly.
"Advisors can prepare for the changes ahead by taking advantage of the current historically low tax rates. Clients who are in a low tax bracket could consider converting funds from a traditional retirement account into a Roth IRA as a tax-saving option. Another option is harvesting capital gains, not just capital losses. If it’s unlikely that a zero or a 15% tax bracket will be available later on in retirement, it might be helpful to harvest some capital gains and take advantage of the low tax bracket."