The Obama Plan…Items Of Interest For Seniors

Over the past few months all of us have seen that our nation has many problems besides just the recession and high unemployment.  The big question is how to correctly fix the problems which can potentially cripple the financial future of this nation.  What will the new presidential administration do to help?  I have heard a lot of different opinions from friends and clients.  Opinions have been good and bad from both Republican and Democrats.  Opinions extend from international treasury officials who also criticize and praise Obama.  Let’s look at some of the pending changes which drive Obamas political engine.

In the beginning of the Bush administration many tax cuts to the wealthy were extended.  Obama’s plans entail repealing many of the Bush tax cuts.  On March 24,2009 White House officials disclosed that tax increases and social security tax increases to the wealthy will not occur before 2011.  There was a strong guarantee that no tax increases will happen to families earning less than $250,000,or single filers less than $166,800 a year.  Capital gain taxation will also remain the same through 2010.  I am sure that when the Obama administration realizes the enormous tax dollars involved they will turn their heads towards the higher tax bracket later.  We can expect to see a continuation of the Alternative Minimum Tax.

For seniors earning less than $50,000 (considered low income,) expect to see an elimination of your Federal Income Tax.  Here are some other significant proposals for seniors:

For those who are at least 70 ½ there will be a suspension of required minimum distributions for account owners.

Suspensions of Federal Income Tax on the required minimum distribution.

Penalty-free hardship withdrawals of 15% to IRA accounts (max of $10,000 a year,) and possibly no Federal Income tax.

We can all conclude that it will be more expensive for the high income earner.  I have developed programs which will reduce your tax bill,it is my specialty.  Come see me for a free tax analysis and tax planning,and IRA planning for your future.

Eric Scott can be reached at (435)773-9444 or visit Eric Scott at 352 E. Riverside Dr. #B-4 Saint George,Utah 84790 Investment Advisory Services provided by Brookstone Capital Management,LLC a SEC registered Investment Advisor. Insurance services offered by Eric Scott Insurance Agency,Inc.