A new tax plan like the one White House leadership wants will impact your retirement as well, especially if you change tax

brackets. Here’s what you need to know:

PRE-TAX CONTINUED

For most people, it might be wise to

pay taxes on income now since

rates are lower, and invest in

something like a Roth IRA account

to ensure money can be withdrawn

tax-free in retirement.

Overall, taxes would decrease by

$2,940 per filer on average. That

extra money can be spent on

retirement investments, like life

insurance, stocks, mutual funds, or

real estate, rather than a new TV or

car.

LOWER TAXES= MORE OPTIONS

if you have less tax to pay, then it

becomes less beneficial to save

money on those taxes today. It may

actually be smarter to pay the taxes

now and then invest the money

(especially if you believe taxes will

go up in the future).

PRE-TAX INVESTMENTS

The Affordable Care Act helped fund

Medicare partially with a surtax on

investment income of 3.8 percent for

those in the highest tax bracket.

Trump and the GOP plan to eliminate

this surtax, which would give high-

income investors significantly more

return on their investments.

BENEFITS FOR THE WEALTHY

Some research institutions estimate

Social Security will be insolvent by

2035, and there may be changes in

the tax code that will impact the

program. Pay serious attention to

this, especially if you’re going to

depend on that income in retirement.

SOCIAL SECURITY?

HEALTH SAVINGS

ACCOUNTSPlans include increasing

contribution limits, establishing

easier ways to pass HSAs on to

beneficiaries, and making the

accounts more portable.

YOUR STRATEGYAnalyze your personal situation and do your research. See what

investment vehicles suit you best—and make those investments.

Watch out for changes in the tax plan that will affect Social Security

and health care in retirement—and prepare accordingly. Doing all this

will put you in a better spot for retirement.

HOW TAX REFORM MIGHT AFFECT

YOUR RETIREMENT

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