DUBLIN, Ohio – Many taxpayers welcomed the Tax Cuts and Jobs Act of 2017 that reduced income taxes through 2025, but now some people worry about the possibility of rates going up after the act expires and how that could affect their retirement.
It’s a special concern for people whose savings are in tax-deferred accounts, such as traditional individual retirement accounts or 401(k)s.
“The overreliance on 401(k)s and IRAs is setting people up for a retirement trap,” Greg DuPont, an estate and tax planning attorney, said. “Given the dynamics of politics and the federal deficit, it’s probable that income tax rates will increase again. There’s a window of opportunity now before 2025 where plans can be adjusted to minimize those effects.
“Focusing on saving for the futur