2021 Retirement Plan Limitations
On October 26, 2020, the Internal Revenue Service announced the cost-of-living adjustments (COLA) that will take effect January 1, 2021 (IRS Notice 2020-79). ...
It’s 6:00 a.m. on Wednesday, November 4; the day after the theoretical election day. Two critical national election outcomes are still unknown:
The outcome may not be known for days (particularly in Pennsylvania, where votes postmarked Tuesday but not delivered until Friday could still be counted). It could be weeks, or worse for the country, if either or both parties decide to litigate election outcomes.
As of Wednesday morning, it appears that there are still six to seven states (Arizona, Georgia, Michigan, Nevada, Pennsylvania and Wisconsin) that do not have a clear presidential winner.
Just as important, key races in the Senate have yet to be decided. Going into the election, the Republican party held a 53-47 majority. Democrats would need to win four additional seats to take a clear majority. An NBC News voting map appears to show that Republicans may maintain control of the Senate with a total of 52 or 53 seats.
If that is the case, the large “blue wave” of control Democratic supporters were hopeful for appears unlikely, leaving their proposed tax policy unlikely to be achievable in the current election cycle. Their agenda included:
Likewise, the general Republican tax policy, as advocated by President Trump, for further tax reductions and extension of sunset provisions in the Tax Cuts and Jobs Act is still at risk without a presidential win. These future tax agenda items included:
Both parties have been advocating for an expansion of credits for improving or expanding U.S. manufacturing jobs.
Without a clear outcome by either party, bipartisan support will be required for passage of additional COVID-19 economic stimulus, which many on both sides of the aisle support. Bipartisanship necessary for significant overall tax policy changes would seem unlikely at this point as well.
With no clear outcome, taxpayers should continue to monitor the situation.
We will certainly continue to monitor federal, state and local election results (and proposed legislation) and their related tax planning opportunities (or risks).
In times of uncertainty, Schneider Downs tax, investment and business advisors are always available to discuss your personal situation and help you plan to achieve your uniquely individual needs and goals.
On October 26, 2020, the Internal Revenue Service announced the cost-of-living adjustments (COLA) that will take effect January 1, 2021 (IRS Notice 2020-79). ...
In March 2020, the CARES Act created the Employee Retention Credit (“ERC”), which allowed qualifying employers of any size to claim a refundable ...
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