♠ Posted by Marc J. Soss in 401(k),employer contribution plan,federal estate tax exemption,federal tax law,House Ways and Means Committee,intentionally defective grantor trust,IRA,tax proposal,taxpayer,Trusts and estates
On September 13, 2021, the Congressional House Ways and Means Committee introduced legislative tax proposals to help fund the House’s proposed $3.5 trillion stimulus package. A brief summary of the trust and estate and retirement asset taxation proposals included within it follow:
1. Trusts and estates with taxable income of over $12,500 (adjusted for inflation) would be taxed at a 39.6% rate, increased from the current 37% rate.
2. Trusts and estates would be taxed on capital gains at a top rate of 25%, increased from the current 20% capital gains tax rate.
3. Trusts and estates with adjusted...