Submit-election 2021 planning: browsing the blue wave

The year 2020 was like no other and through 2021 the mantra 2020 “Expect the Unexpected” continued. The 2020 election cycle finally ended on January 5, 2021 with the Georgia runoff elections, in which Democrats won both Senate seats. As a result, President Biden will have a slight Democratic majority in both the House and Senate (with the Vice President tied). It was not the tsunami that the "Blue Wave" Democrats had hoped for, but rather democratic scrutiny that opened the door to potentially significant tax and regulatory policy changes in 2021.


On January 14th, we received our first hint of what the 2021 legislation will look like when President Joe Biden outlined his American bailout plan. The $ 1.9 trillion economic relief plan includes additional direct economic reviews of $ 1,400 for skilled Americans, increases the federal minimum wage to $ 15 per hour, and includes emergency funding of $ 350 billion for state and local governments. Biden said the proposal is the first step in a two-part plan that is needed immediately, and will be followed by a stimulus plan – the better rebuilding plan he will outline in February. The American rescue plan will bring the total amount of Covid-19 aid to over $ 5 trillion.

From a tax policy perspective, 2021 could also be a year of significant legal tax changes. Under the Biden Plan, the highest personal income tax rate for taxpayers with incomes greater than $ 400,000 will most likely decrease to 39.6 percent, the highest rate before the Tax Cut and Jobs Act (TCJA) passed in 2017. Many of the other TCJA tax cuts could also be reversed, including the corporate tax rate of 21 percent. A new alternative minimum tax for businesses could also be introduced. Further tax increases are also expected, including increased social security taxes and capital gains rates for incomes over $ 400,000 and $ 1 million, respectively.

The main proposed tax policy changes could be in the estate and donation area, where Biden's proposals included eliminating the increase in the death base for inherited assets and reducing the inheritance tax exemption from the current $ 11.7 million to pre-TCJA values ​​of $ 5 million. USD (indexed for inflation) or possibly even lower to USD 3.5 million.

Some fear that these tax increases will come retrospectively as of January 1, 2021, which is certainly possible. The last time that a significant tax increase was decided retrospectively was in August 1993, when the Omnibus Budget Adjustment Act provided for a retrospective increase in the estate tax rate from 50 to 55 percent with retroactive effect from January 1, 1993.

However, many believe that retrospective tax increases are unlikely in 2021 as unemployment is still high. Given the slow economic recovery from COVID-19, this is not an ideal time for significant tax hikes. It is more likely that the expected tax increases will take effect later in 2021 or January 1, 2022, giving investors more time to plan.


The Bipartisan Consolidated Funds Act of 2021 (CAA) was incorporated into law on December 27, 2020 and provides for federal funding of $ 2.3 trillion and COVID-19 relief. The law includes refundable tax credits, new paycheck protection (PPP) and disaster loan disaster (EIDL) programs, and numerous extensions from 2020 Coronavirus aid, aid and economic security (CARES) Act. The 5,593-page CAA also adds numerous new tax, salary and pension provisions.

Recovery discounts and unemployment benefits

The CAA grants a refundable tax credit of $ 600 per taxpayer ($ 1,200 for married taxpayers filing together) and $ 600 per qualifying child. Loan expires above $ 75,000 of Modified Adjusted Gross Income ($ 112,500 for Heads of Household and $ 150,000 for Co-Filed Married Taxpayers). The discounts are based on tax returns for 2019 and therefore a taxpayer could receive a payment that is less than what they are entitled to. These taxpayers could apply for an additional credit for the shortfall on their 2020 tax return. On the other hand, if a taxpayer receives too much payment, they don't have to repay the difference.

For the 14 million Americans who accumulate unemployment, the law provides an additional $ 300 per week from December 26, 2020 through March 14, 2021. The law also provides an additional benefit of $ 100 per week for certain workers who have both wage and self-employment income but whose basic unemployment benefit calculation does not take their self-employment into account.

Deductibility of PPP-financed expenses

The CAA aid package provides $ 284 billion to resume the CARES Act PPP loan program through March 31, 2021. $ 15 billion for live venues, independent cinemas, and cultural institutions; and $ 20 billion in EIDL grants to businesses in low-income communities. The law includes numerous changes to the CARES law PPP and EIDL programs that generally make them simpler and cheaper for borrowers.

In a welcome provision, the law makes it clear that gross income does not include any amount that would otherwise result from the granting of a PPP loan. This addresses a controversial issue where the IRS took the position that no deduction would be allowed on an expense if paying the expense leads to the forgiveness of a PPP loan. The IRS position had effectively negated the intention of Congress to make PPP forgiveness tax-free. The law corrects that.

The deductibility determination applies retrospectively up to the date on which the CARES Act comes into force. The law provides similar treatment for second-drawing PPP loans that apply to tax years ending after the effective date of the provision. The law also clarifies that gross income does not include the granting of certain loans, EIDL emergency grants and certain loan repayment assistance, which are also provided for in the CARES Act.

CAA CARES Act pandemic provisions

Employee Retention Tax Credit: The Act extends the Employee Retention Tax Credit (ERTC) of the CARES Act until June 30, 2021, expands the ERTC, and makes the necessary technical corrections. The extensions to the loan include:

  • Increase in loan interest from 50 to 70 percent of qualified wages;
  • Increase the Eligible Wage Limit per Employee from $ 10,000 per year to $ 10,000 per quarter;
  • A reduction in the required gross income compared to the previous year falls from 50 percent to 20 percent;
  • A safe haven that enables employers to determine eligibility based on gross earnings for the previous quarter;
  • A provision that allows certain government employers to avail of the loan;
  • Increase in the number of employees in determining the relevant qualified wage base from 100 to 500; and
  • Rules that allow new employers that did not exist in whole or in part in 2019 to take advantage of the loan.

The law also makes the following changes retrospectively from the effective date of the CARES law:

  • Ensures that employers who receive PPP loans continue to be eligible for the ERTC in respect of wages not paid with issued PPP proceeds;
  • Clarifies the determination of gross income for certain tax-exempt organizations; and
  • It clarifies that spending on group health plans can be considered qualified wages even if the employee is not paid other wages, which is in line with IRS guidelines.

Income Tax Credits: The CAA is extending reimbursable income tax credits for paid sick leave and family vacations set out in the Family First Coronavirus Response Act through March 2021. In addition, the wage tax credits will be changed to apply as if the employer in question had prescribed it to be extended to March 31, 2021. The CAA also allows individuals to use their average daily self-employed income from 2019 instead of 2020 to calculate the loan.

Postponement of Workers' Wages Share: In August, President Trump issued a memorandum allowing employers to postpone the withholding, filing, and payment of the worker's share of OASDI (Old Age, Survivors and Disability Insurance) tax for any worker whose pre-tax wage or compensation is generally less than $ 4,000 during a bi-weekly pay period.

Trump's deferral applies to income taxes on wages paid September 1 through December 31, 2020. Under the memorandum, employers must increase withholding tax and pay the deferred amounts on a pro-rated basis from wages and compensation paid between January 1, 2021 and April 30, 2021. The CAA extends the repayment period to December 31, 2021.

Protective Equipment Instructor Costs: The CAA requires the Treasury Department to issue regulations or other guidance as long as the cost of personal protective equipment and other aids used to prevent the spread of COVID-19 are treated as an eligible cost of extracting instructor costs. The regulations or guidelines apply retrospectively until March 12, 2020.

Pension Plan Relief: The CARES Act allows individuals to temporarily withdraw certain pension plans for coronavirus-related expenses with impunity, allow taxpayers to pay the related tax over a three-year period, allow taxpayers to reallocate funds withdrawn , and the allowable limits for retirement savings loans. The CAA is adding cash purchase pension plans to the retirement plans that qualify for these temporary rules. The provision applies retrospectively to the date on which the CARES Act comes into force.

Note that the CAA is not extending the CARES Act's temporary waiver of required minimum payouts. Affected taxpayers should plan to resume these distributions in 2021.

CAA tax regulations

Temporary grant of full allowance for business meals: The law provides for a temporary deduction of 100 percent of business costs for meals (instead of the current 50 percent) as long as the costs for food or drinks in a restaurant are incurred. This provision applies to expenses that are incurred after December 31, 2020 and expire at the end of 2022.

Certain Nonprofit Deductible Charitable Contributions: Under CARES, taxpayers who fail to disclose their deductions on their tax returns can still claim an over-the-line deduction for cash contributions to qualified charities in 2020 . CAA Extends This deduction doubles the deduction for married filers to $ 600 through 2021. Contributions to funds advised by donors and supporting organizations cannot be deducted. The penalty is increased from 20 percent to 50 percent of the underpayment for taxpayers who overestimate that deduction.

Change in restrictions on charitable contributions: The CARES Act raised the restrictions on charitable deductions for cash contributions in 2020 from 50 percent to 100 percent of adjusted gross income (AGI). The CAA transfers this to more flexibility in tax planning for 2021. Excess cash contributions are carried forward to later years.

Education Costs: The law removes the deduction for qualified tuition and related costs, and in its place increases the Lifelong Learning Credit Exit Limits (so that they match the American Opportunity Credit Exit Limits) for tax years beginning after December 31st 2020.

Earned Income Tax Credits: The CAA includes a temporary change that may result in larger Earned Income Tax Credits (EITCs) and Child Tax Credits (CTCs). It allows lower-income individuals to use their 2019 tax year income to determine their EITC and the refundable portion of their CTC for the 2020 tax year. This could lead to bigger loans for eligible taxpayers who earned lower wages due to the 2020 pandemic.

Temporary Special Rules for Flexible Spending Regulations for Health and Dependent Care: The CAA allows taxpayers to extend unused amounts in their flexible spending arrangements for health and dependent care from 2020-2021 and 2021-2022. This provision also enables employers to give employees the opportunity to meet employees with an anticipated change in contribution amounts by mid-2021.

Depreciation of Certain Residential Properties Over a 30 Year Period: The CAA provides that the restoration period for residential properties that were commissioned before January 1, 2018 and held by a selected real estate agent or company is 30 years.

Energy recovery property eligible for an energy credit: The CAA grants an energy recovery property for the energy investment tax credit, which is valid for the years 2021 to 2023. The energy recovery property generates electricity from the heat of buildings or devices.

Minimum age for distributions during retirement: The CAA allows certain qualified pensions to be distributed to employees who are 59½ years or older and who are still working. For certain construction and construction workers, the age will be reduced to 55 years.

Temporary Rule to Prevent Partial Termination of Plan: The CAA provides that qualifying plans will not be treated as partially terminated during a plan year that spans March 13, 2020 through March 31, 2021, provided the number of active Participants is covered According to the plan of March 31, 2021, at least 80 percent of the number recorded on March 13, 2020.

CAA Disaster Tax Relief

The CAA provides civil protection to individuals and businesses in President-Declared Disaster Areas for major disasters (excluding COVID-19) reported after December 31, 2019 up to 60 days after the Effective Date.

Use of Pension Funds for Disaster Reduction: The CAA enables residents of qualified disaster areas (as defined by law) to receive a qualified distribution of up to $ 100,000 from a retirement plan or individual retirement account (IRA) with no penalty. Withdrawals are included in income over a three year period or can be reassigned to the plan.

Disaster Area Employee Loyalty Credits: The CAA grants employers who operated an active trade or business in a qualifying disaster area (as defined by law) a tax credit of 40 percent of wages (up to $ 6,000 per employee). The credit applies to wages paid regardless of whether the employee performed services associated with those wages.

Qualified contributions to disaster relief: The CAA amends the change in contribution limits for charitable purposes through the CARES Act for 2020 so that companies can make qualified contributions to disaster relief in the amount of up to 100 percent of their taxable income.

Qualified Personal Injury Disaster Loss: The CAA allows individuals with a net Disaster Loss (as amended by law) to increase their Standard Withholding Amount by the amount of the Net Disaster Loss.

CAA Tax Extender

Medical Expense Deductions: For tax years beginning before January 1, 2021, a single deduction is allowed for unreimbursed medical expenses that exceed 7.5 percent of Adjusted Gross Income (AGI). The threshold should increase to 10 percent of the AGI for 2021. The CAA permanently sets the threshold for tax years beginning after December 31, 2020 at 7.5 percent of the AGI.

Five-year tax expander: The CAA provides for the following provisions to be extended by five years:

  • New Markets Tax Credit.
  • Employer credit for paid family and sick leave, in addition to tax credits for paid sick and family leave.
  • Credit for job opportunities.
  • Gross Income Exclusion for Primary Residence Indebtedness Exemption, although the exclusion amount has been reduced from $ 2 million to $ 750,000.
  • Tax-free exclusion for certain $ 5,250 employer student loan payments through 2025. Payment can be made to the employee or the lender.
  • Designation of the authorization zone.

Two-year tax expander: The law provides for the following provisions to be extended by two years:

  • Energy efficient residential real estate loan. The bill also provides for qualified biomass fuel real estate spending for credit.
  • Credit to sequester carbon oxide (until 2025).
  • Energy investment tax credit for energy efficient solar and residential properties.

Annual tax expander: The law provides for the following provisions to be extended by one year:

  • 10 percent credit for qualified non-commercial energy properties.
  • Credit for qualified fuel cell vehicles.
  • 30 percent credit for the cost of refueling vehicles with alternative fuel.
  • 10 percent credit for plug-in electric motorcycles and two-wheelers.
  • Health insurance tax credit.
  • Credit for electricity from certain renewable resources.
  • Energy efficient home loans.
  • Treat qualifying mortgage insurance premiums as qualifying residence interest.
  • Three year recovery period for racehorses two years or younger.
  • Alternative fuels excise tax credits.
  • The American Samoa Business Development Loan


Biden's American rescue plan

President Biden's American bailout builds on earlier relief for individuals, households, and small businesses. It would include funding the distribution of vaccines and helping state and local governments.

Stimulus Checks: The Biden Plan would increase direct payments to individuals for most Americans to $ 2,000, on top of the $ 600 the CAA provided in December. The plan would also allow residents married to undocumented residents banned in previous rounds to receive stimulus payments.

Tax credits, child care: Biden would expand tax credits for low and middle income families and make them refundable for 2021. He suggests increasing the child tax credit from $ 2,000 for each child aged 17 and under to $ 3,000. Children under six are eligible for $ 3,600. Biden is also seeking $ 25 billion for a stabilization fund to open daycare facilities and $ 15 billion for grants to help key workers meet childcare costs.

Paid vacation:: The Biden Plan would require employers regardless of size to offer paid sick leave to workers during the pandemic, expanding the benefit to an estimated 106 million workers. Parents and family members caring for sick relatives or out-of-school children could receive more than 14 weeks of paid sick leave and family leave. The plan provides benefits of up to $ 1,400 per week and tax credits for employers with fewer than 500 employees to reimburse them for vacation expenses.

Vaccinations, tests:: Biden's plan calls for $ 20 billion to create a national vaccine distribution program that will offer free shots to all U.S. citizens regardless of immigration status. The plan provides for the establishment of community vaccination centers and the use of mobile units in hard-to-reach areas. Biden is also calling for $ 50 billion to step up testing efforts, including purchasing rapid tests, expanding laboratory capacity, and helping local jurisdictions implement test plans.

State aid:: Biden is pushing for $ 350 billion to fund state, local, and territorial governments and $ 20 billion for public transportation systems.

unemployment insurance:: Biden's plan would extend and expand unemployment benefits, which is due to expire in mid-March. The proposal increases a weekly federal benefit from $ 300 to $ 400 and extends it through September.

minimum wage:: Biden would raise the federal minimum wage from $ 7.25 to $ 15 an hour and end the minimum wage widely used by restaurants and the hospitality industry.

schools:: The plan also provides $ 170 billion to help schools open. About $ 130 billion would go to K-12 schools to help them hire additional staff to reduce class size, change rooms, and buy resources to meet students' academic and mental health needs. The plan would also channel $ 35 billion to colleges and universities and create a $ 5 billion fund for governors to channel aid to schools hardest hit by the virus.

Rental support:: The proposal would extend the eviction and foreclosure moratorium until September. It would also allocate $ 30 billion to help low-income households who have lost their jobs pay rent and utility bills. The plan would also allocate $ 5 billion to states and communities to provide emergency shelter to families affected by homelessness.

Small businesses: Biden proposes $ 35 billion of government funding in low-interest loans of $ 175 billion to finance small businesses. He is also calling for $ 15 billion in grants for such employers.


President Biden said his US bailout plan will be followed by a second economic recovery plan, the Build Back Better Recovery Plan. The aim is to initiate recreation, infrastructure, green energy, health care and education. It will focus on the longer term recovery as well will be explained in more detail in February.


Biden's US bailout plan did not include tax increases, and since stimulus plans have priority, it may be mid-year or later by the time a Biden tax package is presented. While there are some differences among Democrats in how best to raise taxes, the party agreed that it reversed Trump's TCJA tax cuts for high-income households during the campaign. The 50:50 split in the Senate means any Democratic senator would have to support a tax hike bill to get passed if Republicans don't support it.

If Biden manages to build on this tight blue wave of democratic control, his tax hikes could be retroactive to January 1, 2021 as mentioned above. Retroactive effect is possible, but the later in the year the legislation was enacted, the more likely it is that most provisions are expected to take effect on January 1, 2022. However, some provisions may come into force earlier, e.g. B. the date of introduction of the legislation or the date of its signature.

Higher income tax rates

During the campaign, the Democrats proposed increasing taxes for earners with annual incomes above $ 400,000, reducing taxes for others, and increasing benefits for the low-paid. Assuming these income tax increases take effect in 2022, during times of rising tax rates, those affected will want to use basic tax bracket management strategies such as: B. accelerating income by 2021, converting Roth IRA, exercising stock options and claiming bonuses in 2021. if possible.

From a corporate tax rate perspective, Biden suggests increasing the corporate tax rate from 21 to 28 percent. Some have speculated since the campaign that given the fragile economy and narrow democratic majority, the rate will only rise to 24 or 25 percent. The Biden Plan would also create a new alternative minimum tax of 15 percent for companies with net book income in excess of $ 100 million. This plan could have bipartisan support from the Republicans in order to reduce the deficit.

Limitation of individual deductions

A Biden government would limit the value of individual deductions by restricting a taxpayer with income in excess of $ 400,000 to a 28 percent tax break. The itemized deductions would be further limited at this income level by restoring the pease restriction before 2018, which would reduce itemized deductions by 3 percent of the AGI to up to 80 percent of itemized deductions. It is also proposed that the US $ 10,000 State and Local Tax Withholding (SALT) cap be removed. Itemizers should plan to defer SALT payments until 2022 if possible.

Pension plan contributions

The Biden administration is proposing to convert the current deductible retirement contributions into a refundable tax credit of 26 percent for every US dollar deposited. Roth's tax treatment would not be affected and therefore higher income taxpayers would likely benefit from switching to more Roth plans after this change in the law.

Increased wage taxes

Biden's wage tax proposal would make wage and self-employment income greater than $ 400,000 subject to social security wage tax. Currently, the 6.2 percent tax is levied on the first $ 142,800 of wage income so wages between $ 137,700 and $ 400,000 would not be taxed, creating a donut hole structure. The tax is 12.4 percent for self-employed people who pay half of the employee and half of the employer. Someone who is self-employed and making $ 1 million a year would increase their self-employment (SE) tax by $ 74,400, which is slightly mitigated by the fact that the employer's 50 percent contribution is deductible when calculating the AGI would.

Should this tax be expanded, entrepreneurs could consider switching to an S-corporation structure, as dividends from the S-corporation are not subject to wage tax provided that appropriate remuneration rules are observed. In terms of executive pay, incentive stock options would likely become more popular as there is no social security tax on the option spread.

Higher capital gains and capital gains taxes

Under the Biden Plan, individuals who earn more than $ 1 million are subject to normal income tax rates on their long-term capital gains and qualifying dividends. Investors with incomes greater than $ 1 million should consider selling valued assets in 2021 before the 20 percent preferential rate for long-term capital gains and qualified dividends is abolished in 2022.

Other options to consider include investing in Opportunity Zone funds, donating valued assets (including to take advantage of the current estate and gift tax exemptions), and making charitable contributions of valued assets to qualified charities, including donor advised funds and private foundations .

Limitations on 199A Pass-Through Withdrawal and 1031 Similar Exchanges

Die Biden-Plattform würde den 20-prozentigen Abzug des TCJA-Code Section 199A für Pass-Through-Geschäftseinkommen für Personen mit einem Einkommen von mehr als 400.000 USD auslaufen lassen. Es würde auch die steuerliche Behandlung gleichartiger Immobilienbörsen auf derselben Ebene ändern oder beseitigen. Betroffene Steuerzahler werden aufgefordert, vor dem Inkrafttreten einer Gesetzesänderung zu erwägen, das Einkommen zu beschleunigen und 1031 Transaktionen bis 2021 abzuschließen.

Nachlass- und Schenkungssteueränderungen

Der Schwellenwert für die Befreiung von der Erbschaftssteuer für 2021 beträgt 11,7 Millionen US-Dollar pro Person (inflationsindexiert) bei einem Spitzensteuersatz von 40 Prozent. Nach 2025 soll dieser Betrag auf die Befreiung vor dem TCJA zurückgehen, bei der es sich um einen indexierten Betrag handelt, der ungefähr 5,8 Mio. USD entspricht. Der Biden-Plan würde die Reduzierung der Ausnahmeregelung jetzt beschleunigen, entweder auf das Niveau vor dem TCJA von 5 Mio. USD (indexiert für die Inflation) oder auf nur 3,5 Mio. USD, wie von der Obama-Regierung vorgeschlagen. Der Spitzensteuersatz würde auf 45 Prozent oder möglicherweise höher steigen.

Ebenfalls vorgeschlagen wird die Beseitigung des „Basis-Step-Ups“ beim Tod. Gegenwärtig basiert eine zukünftige Kapitalertragssteuer bei Veräußerung eines vererbten Vermögenswerts auf dessen Wert zum Zeitpunkt des Todes oder sechs Monate später, was als Basiserhöhung bezeichnet wird. Der Biden-Plan ist unklar, wie diese Änderung umgesetzt werden soll, es gibt jedoch zwei Möglichkeiten. Die erste besteht darin, nicht realisierte Gewinne des Verstorbenen zu besteuern, wobei der Nachlass des Verstorbenen die Steuer zum Zeitpunkt des Todes auf der Grundlage seines beizulegenden Zeitwerts zahlen würde und vermutlich die Erben das Vermögen auf einer Basis nehmen würden, die auf diesen Wert erhöht ist. Alternativ würden die Erben beim Tod eine Übertragungsgrundlage erhalten und auf dieser Grundlage eine Kapitalertragssteuer auf den Verkauf des Vermögenswerts zahlen. Jede Option würde zu einer erheblichen Steuer auf geschätzte Vermögenswerte führen.

Es ist auch möglich, dass bestimmte Treuhandstrukturen für die Nachlassplanung wie GRATs (Grantor Retained Annuity Trusts), SLATs (Spousal Lifetime Access Trusts) oder Dynasty Trusts geändert oder beseitigt werden. In der Erwartung, dass die Befreiung von der Erbschaftssteuer halbiert oder mehr gesenkt werden könnte, sollten Steuerzahler mit Grundstücken von nur 3,5 Mio. USD ernsthaft über einen Vermögensübertragungsplan im Jahr 2021 nachdenken.


Das vorgeschlagene Gesetz zur Altersvorsorge, die Sicherung eines starken Ruhestandsgesetzes von 2020, wurde im Oktober im Haus eingeführt. Im Falle eines Inkrafttretens würde dies erhebliche Auswirkungen auf 401 (k) s, 403 (b) s und IRA haben und den Arbeitgebern helfen, die Stärke ihres Pensionsplans zu verbessern, indem die Deckung erweitert und die Altersvorsorge erhöht wird. Hier ist eine Liste der wichtigsten Vorschläge, die in den vorgeschlagenen Rechtsvorschriften enthalten sind:

Erhöhen Sie das Alter, um mit der obligatorischen Ausschüttung zu beginnen: Während das Gesetz zur Festlegung jeder Gemeinde für die Verbesserung des Ruhestands (SECURE) im Jahr 2019 das erforderliche Mindestverteilungsalter (RMD) im Allgemeinen auf 72 Jahre erhöhte, würde das vorgeschlagene Gesetz das erforderliche Mindestausschüttungsalter auf 75 Jahre erhöhen.

Erweitern Sie die automatische Registrierung in Altersversorgungsplänen: 401 (k) -, 403 (b) – und SIMPLE-Pläne wären erforderlich, um berechtigte Teilnehmer automatisch einzuschreiben, sofern sich die Mitarbeiter nicht abmelden. Die anfängliche automatische Verschiebung der Registrierung würde mindestens 3 Prozent, jedoch nicht mehr als 10 Prozent betragen. Jedes Jahr würde sich der Betrag um 1 Prozent erhöhen, bis er das Maximum von 10 Prozent erreicht.

Vereinfachung und Erhöhung des Guthabens des Sparers: Mit dem Vorschlag würde das Guthaben des Sparers dahingehend geändert, dass ein einheitlicher Satz von 50 Prozent geschaffen, der maximale Kreditbetrag von 1.000 USD auf 1.500 USD pro Person erhöht und der maximale Betrag für die Einkommensberechtigung erhöht wird. Die Gesetzgebung würde den Kredit an die Inflation anpassen.

Indexierung der IRA-Aufholgrenze: Nach geltendem Recht wird die Grenze für IRA-Beiträge für Personen, die das 50. Lebensjahr vollendet haben, um 1.000 USD (nicht indexiert) erhöht. Die Gesetzgebung würde die Beiträge zur IRA-Aufholgrenze ab 2022 indexieren.

Höheren Nachholbeitrag nach dem 60. Lebensjahr zulassen: Derzeit können Arbeitnehmer ab 50 Jahren Nachholbeiträge zu Altersversorgungsplänen leisten, die die insgesamt geltenden Grenzwerte überschreiten. Für das Jahr 2021 beträgt der Aufholbeitrag 6.500 USD. Die Gesetzgebung würde diese Grenzwerte für Personen ab 60 Jahren auf 10.000 USD bzw. 5.000 USD (beide indexiert) erhöhen.

Kleine unmittelbare finanzielle Anreize für Beiträge zulassen: Um die Teilnehmer zu motivieren, zu einem 401 (k) -Plan beizutragen, würde die Rechnung kleine unmittelbare Anreize wie Geschenkkarten ermöglichen.

Reduzierung der Verbrauchsteuer auf bestimmte Akkumulationen in qualifizierten Pensionsplänen: Das Gesetz würde die Strafe für die Nichteinnahme eines RMD von 50 Prozent auf 25 Prozent senken. Wenn ein Versäumnis, einen RMD zu erhalten, rechtzeitig korrigiert wird (wie in der Rechnung definiert), wird die Verbrauchsteuer auf das Versäumnis von 25 Prozent auf 10 Prozent gesenkt.

Ausgenommene Personen mit niedrigem Kontostand von den RMD-Regeln: Die vorgeschlagene Gesetzgebung würde die Teilnehmer nicht dazu verpflichten, einen RMD zu nehmen, wenn der Saldo in ihren Pensionsplänen und IRAs (ohne leistungsorientierte Pläne) am 31. Dezember des Jahres nicht mehr als 100.000 USD (indexiert) beträgt bevor sie 75 erreichen.

Ändern Sie die Gutschrift für Startkosten für kleine Pensionspläne für Arbeitgeber: Die vorgeschlagene Startgutschrift würde für Arbeitgeber mit bis zu 50 Arbeitnehmern von 50 Prozent der Verwaltungskosten auf 100 Prozent erhöht. The applicable percentage would be 100 percent in the first and second years, 75 percent in the third year, 50 percent in the fourth year, and 25 percent in the fifth year.

This retirement legislation could be attached to and pass as part of other legislation in 2021.


2021 is shaping up to be another year of significant new legislation after the Democrat’s Blue Wave, leading to many tax and financial planning opportunities for investors to surf. With the potential of retroactive tax legislation unlikely, investors should be planning now for these upcoming law changes. Your Wintrust advisor is here to guide you on your financial planning, the PPP loan application process, or other investment or financial needs you may have.


Daniel F. Rahill, LL.M, CPA, J.D., is a Managing Director at Wintrust Wealth Management, where he works with clients to determine their financial objectives and develop strategies for their tax, estate, investment, philanthropic, and family capital needs. Dan works closely with shareholders and their privately-held businesses on mergers, acquisitions, divestitures, and succession planning. He also advises wealthy families on tax minimization, wealth preservation, and family office management.

Previously, Dan was with KPMG for 27 years, where he held numerous leadership roles over his 21 years as a tax partner, including tax managing partner of the Chicago Metro Business Unit and trustee of the KPMG Foundation. He served as the lead partner on many of KPMG’s high-profile multinational accounts, privately-held companies, and family offices. Prior to KPMG, Dan practiced law in Chicago, specializing in tax and estate planning. He began his career in audit with Ernst & Young.

Dan frequently lectures to CPA societies, bar associations, family office organizations, trade and industry groups, and universities. He is often published and interviewed in the media, including Chicago Tribune, Crain’s Chicago Business, ABC7, WBBM Radio, Yahoo Finance, and the Illinois CPA Society’s Insight Magazine. Dan is currently President of the Illinois Chapter of the American Academy of Attorney-CPAs, the Financial Planning Association of Illinois and the Chicago Estate Planning Council. He is a former chairman of the Illinois CPA Society, and serves on three academic advisory boards and several nonprofit boards and committees.

Dan graduated from the University of Notre Dame with a bachelor’s degree in accounting, received his law degree and a master of laws in taxation (LLM) from the DePaul University College of Law, and is admitted to practice law before the United State Tax Court.