On December 16, 14 women got together on zoom to talk about Year End Financial Actions and the tax implications of the OBBB that was passed by congress in July.

The OBBB was passed as a reconciliation bill which means it can only deal with spending items and only requires 51 votes to pass in the Senate. Reconciliation bills cannot make policy changes. The best example of that is the extra $6000 deduction for people age 65 and over. It has been touted as meaning "Social Security taxes were removed", but it is not that because

- No taxes on Social Security would be a policy change which is not allowed in a reconciliation bill
- People age 65 and over receive the deduction whether or not they receive social security
- People under age 65 do not receive the deduction even if they receive social security

The standard deduction amount received an extra 5% boost beyond inflation and the SALT (State and Local Tax) allowed amount increased significantly. This could be important to us in a high tax state like MN. If somebody helps with your taxes, I'm sure they know about all these changes and you will be aware when you review your taxes.

As related to year end actions, Roth conversions became a little less compelling since Congress "permanently" extended the current lower tax rates. We also talked about taking your RMDs and rebalancing your portfolio to align with your planned allocation. We also talked ways to maximize your charitable gifts through a Qualified Charitable Distribution (QCD) if you over 70 1/2 or by giving appreciated stocks in your taxable accounts.

Thanks to Elisa for sharing her experience with her planner of 3 years.

Our January topic is Estate Planning - at least do some minimal stuff. We will meet via zoom on Tuesday, January 20, 6:30-8:00 PM.

All are welcome to join us on zoom. Join the group or contact Cyndy using the info above.