Keep pulling the thread on Bill Artseronian.
A legislative change taking effect in 2026 will require all 401k catch-up contributions for individuals over age 50 to be made on a Roth (after-tax) basis.
A new tax bill has increased the cap on the federal deduction for state and local taxes (SALT) from $10,000 to $40,000.
Bill Artseronian predicts that starting next year, a new rule will make the first 0.5% of a taxpayer's Adjusted Gross Income (AGI) given to charity non-deductible.
The increased $40,000 SALT deduction is subject to an income phase-out that begins at $500,000 of total income and fully reverts the cap to $10,000 at $600,000 of income.
Bill Artseronian predicts that starting next year, the value of itemized deductions for taxpayers in the 37% bracket will be limited, treating them as if they were in the 35% bracket.
The maximum combined employer and employee contribution to a 401k plan for the current year is $70,000.
The "mega backdoor Roth" strategy allows employees with eligible 401k plans to contribute after-tax dollars and convert them to a Roth account for tax-free growth.
An analysis by Bill Artseronian and his colleague Bill Sweet found that high-deductible health plans have an attractive financial break-even point due to lower premiums and the long-term investment benefits of Health Savings Accounts (HSAs).
The 401k catch-up contribution limit for individuals over age 50 is $7,500 for both the current and upcoming tax years.
The state of New Jersey does not allow tax-loss carryforwards, requiring capital losses to be used to offset gains within the same tax year.
For many investors at Ritholtz Wealth Management, taxes are their largest annual expense, comparable to their mortgage payments.
The qualified business income (QBI) deduction provides a 20% deduction for pass-through income, but is subject to limitations.