Big Tax Changes for 2023: Start Planning Now

April 19, 2023
Inflation and the SECURE Act 2.0 brought big changes to the tax landscape for 2023. What are they, and how they may impact your tax bill?

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With the 2022 tax-filing season in the rear-view mirror, it's time to focus on the 2023 tax environment and the changes that could make a big difference to your return. Nancy Murphy, a senior wealth strategist at Charles Schwab with a focus on estate planning, joins host Mike Townsend to discuss how higher inflation has had a big impact on individual tax brackets, the estate tax, retirement savings contribution limits, and more. Nancy walks through some key opportunities and decision points for investors, including whether the time is right to make a Roth conversion, how to handle new rules for inherited IRAs, how to plan amid the uncertainty as several major tax provisions are set to expire at the end of 2025, and the difference waiting to take Social Security can make.

Mike also provides updates from Washington on the latest twists and turns in the debt ceiling drama and highlights key takeaways from SEC Chair Gary Gensler's recent contentious testimony before House committee.

WashingtonWise is an original podcast for investors from Charles Schwab.

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Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.

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