Where do you think tax rates are headed? Right now, taxes are near their historic lows. While we’d all like to think they’ll remain that way, odds are rates will eventually start to rise. How high? No one knows for sure, but even the most incremental increase is likely to make a difference in the amount of money you have available in retirement.
Historical Highest Marginal Income Tax Rates
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Income is critical to your quality of life. When it comes to retirement, income is king. That’s why it’s so important to make the most out of your income-generating assets. Typically, the income you receive from these assets falls in to three tax categories: Taxable, Tax Deferred, or Tax Free. That's where tax diversification comes in. The graph above illustrates the highest marginal income tax rates over history. Exemptions, deductions, and state and local taxes are not taken into account when illustrating these marginal tax rates. Your actual tax rates may vary from those shown on the graph, and historical rates are not a guarantee of future rates. Source: 2/9/2022. https://www.taxpolicycenter.org/statistics/historical-highest-marginal-income-tax-rates
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1099 never 1099 now *“Tax free” refers to the future treatment of assets which have already been subject to income taxation before being put into an account or product. Certain interest, although exempt from federal income tax, may still be reportable to the IRS and, in certain circumstances, may be subject to the alternative minimum tax (AMT). 1099 later
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