In this timely episode of Kaz's Korner, host Adam Kazinec and guest expert Blaise Stevens, Managing Member of Strategic Advisory Partners, prepare listeners for the approaching tax changes of 2025-2026. As the potential sunset of the 2017 Tax Cuts and Jobs Act looms, they provide practical strategies for weathering the upcoming financial shifts.

The discussion begins with immediate action steps for tax preparation, focusing on retirement account strategies that remain valuable regardless of future changes. Stevens reveals that about half of company retirement plans lack ”true-up” provisions, a detail that could cost employees thousands in matching contributions if not properly managed. They explore new opportunities coming in 2025, including enhanced catch-up provisions for those aged 60-63, offering a silver lining amid the tax changes.

While the prospect of higher tax brackets in 2025 might seem daunting, the experts break down the real impact on different income levels. For example, they explain how a married couple making $120,000 might only see an actual tax increase of about $600 annually, demonstrating that with proper planning, these changes are manageable for most households. They emphasize that understanding the graduated tax system is crucial – only the dollars in each bracket are taxed at that rate, not your entire income.

The conversation takes a deep dive into protective strategies for business owners, who may face particular challenges with the potential loss of pass-through business deductions. Stevens and Kazinec stress the importance of understanding the difference between deductions and credits, cautioning against common year-end mistakes like unnecessary equipment purchases purely for tax purposes. Instead, they outline more effective approaches through retirement plans and profit-sharing strategies.

Estate planning emerges as a critical component of long-term tax protection. The experts address concerns about state-specific estate and inheritance taxes, with particular attention to states like Maryland that impose multiple layers of death-related taxes. They also tackle modern challenges like digital asset and cryptocurrency inheritance planning, providing guidance for protecting wealth in all its forms.

The episode concludes with often-overlooked protective strategies, including maximizing Health Savings Accounts (HSAs) as tax-efficient investment vehicles and leveraging charitable giving strategies. These approaches can help create tax efficiency now while building protection against future tax increases.

For listeners seeking professional guidance through the coming tax changes, Blaise Stevens can be reached through Strategic Advisory Partners' website at strategicadvisorypartners.com.

Note: This episode was recorded in late 2024 and discusses forward-looking tax changes and planning strategies applicable to that time period.