Federal marginal income tax rates are below the long-term average but will increase in 2026 when the Tax Cuts and Jobs Act sunsets.
GUIDE TO RETIREMENT
Explain the opportunities to your clients
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Healthy income tax diversification can be achieved by contributing to Roth and/or Pre-Tax/Traditional accounts over time based on current vs. future earnings and potential tax environments.
Health Savings Accounts are triple-tax advantaged, so if eligible to contribute, make the most of it. Tax advantages include tax-deductible contributions, tax-deferred earnings and tax-free withdrawals for qualified health care expenses.
Retirement accounts have different tax characteristics. Be sure to understand when they have preferential tax treatment and when taxes are due.
Sheltering investment growth in tax-deferred accounts over the long term may result in more wealth for retirement.
With a 529 plan, investment earnings and withdrawals are tax free when used to pay qualified higher education expenses.*
COLLEGE PLANNING ESSENTIALS
Earnings on federal non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes.
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Earnings on federal non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. New York State tax deductions may be subject to recapture in certain additional circumstances such as rollovers to another state’s 529 plan, or withdrawals used to pay elementary or secondary school tuition (“K-12 Tuition Expenses”), registered apprenticeship program expenses (“Apprenticeship Program Expenses”), or qualified education loan repayments (“Qualified Education Loan Expenses”) as described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Tax and other benefits are contingent on meeting other requirements. Please consult your tax professional about your particular situation.
529 plans offer benefits not found in other college savings vehicles.
Gifts to 529 plans can help families meet college costs while also reducing estate taxes, increasing inheritances and creating lasting legacies.
Having a 529 plan provides opportunities for several college-related tax breaks.
529 pGifts to 529 plans can help families meet college costs while also reducing estate taxes, increasing inheritances and creating lasting legacies.lans offer benefits not found in other college savings vehicles.
Many states offer a tax deduction for contributing to any 529 plan.
