Lifestyle inflation is ensnaring high-income earners and subtly transforming middle America.
I’ve been involved in financial planning for over three decades, and I’ve started noticing a troubling trend spreading across the country. Interestingly, a growing number of Americans aged 30 to 50 are making over $100,000 a year, yet they find themselves living paycheck to paycheck. I refer to them as “lifestyle loopers.” Even those earning […]
High-income earners may soon forfeit a tax benefit due to this 401(k) change.
Major changes are on the horizon for 401(k) plans that could affect tax breaks for high-income earners, according to experts. As we look toward 2025, employees will have the opportunity to defer up to $23,500. For those aged 50 and above, there’s an extra $7,500 allowed, labeled as a “catch-up contribution.” Interestingly, for individuals aged […]
Peter Thiel’s $5 billion tax-exempt account led to a new 401(k) regulation affecting high-income Americans over 50.
Starting in the 2026 tax year, older workers with incomes exceeding a certain limit will be unable to make traditional 401(k) catch-up contributions. Specifically, those over 50 who earned more than $145,000 in the previous year will only be allowed to make post-tax (Roth) catch-up contributions. The IRS plans to evaluate the final regulations and […]
Trump's plan to eliminate income taxes on Social Security benefits would help high-income households, report finds – CNBC
Republican presidential candidate President Donald Trump arrives to speak at a campaign event at the Cherokee Center in Harra on August 14, 2024 in Asheville, North Carolina. Grant Baldwin | Getty Images On the campaign trail, President Donald Trump touted plans to eliminate income taxes on social security benefits. Now in the White House, Trump […]
$1.3B in unpaid taxes recovered from high-income Americans
The Treasury Department announced Friday that it had collected $1.3 billion in unpaid taxes from high-income Americans. The recovered funds were part of the Biden administration's effort to help wealthy people meet their tax obligations under the Curb Inflation Act. According to a statement from the ministry:. Starting in February 2024, the IRS plans to […]
IRS going after high-income earners who owe hundreds of millions of dollars
Sen. John Thune (RS.D.) discusses whether China stole U.S. tax information via Varney & Co.’s TikTok. The Internal Revenue Service (IRS) has announced it is cracking down on more than 125,000 high-income individuals who have failed to file federal income tax returns since 2017 in an effort to recover hundreds of millions of dollars in […]