I'm in the same financial situation as you at this time. Right now, up to 85% of Social Security can be taxed as income and is called a financial torpedo for a reason. This would no longer be the case in this scenario.
Currently if your money was invested pre-tax (IRA, 401K, 403b), you would pay tax on it as income when taking it out for retirement. Under this tariff plan, you should not be taxed on it as income. If you have money in a Roth plan, all your gains in investments were already sheltered from income taxes while in the fund.
So in theory, we should be in a good position by having more money available to spend on potential higher priced items. Having more money also means you can invest, rather than spend to make even more money.
I just hope they don't try to attach some kind of retroactive capital gains tax to those investments.
I'm in the same financial situation as you at this time. Right now, up to 85% of Social Security can be taxed as income and is called a financial torpedo for a reason. This would no longer be the case in this scenario.
Currently if your money was invested pre-tax (IRA, 401K, 403b), you would pay tax on it as income when taking it out for retirement. Under this tariff plan, you should not be taxed on it as income. If you have money in a Roth plan, all your gains in investments were already sheltered from income taxes while in the fund.
So in theory, we should be in a good position by having more money available to spend on potential higher priced items. Having more money also means you can invest, rather than spend to make even more money.
I just hope they don't try to attach some kind of retroactive capital gains tax to those investments.