Dan Celia

Financial Issues

February 2016 – Q: What tax changes might impact our personal finances in 2016?

A: Changes in the code increase taxpayer frustration with an already complex system. This has especially been the case under the Obama administration. So, at this point it is difficult to predict what changes may or may not be implemented. In general, important tax regulations that were due to expire have all been extended, or likely will be. That is why, in my opinion, the safest strategy is to assume 2016 will be a repeat of 2015, although there is no guarantee.

On the positive side, the law permitting you to transfer your Required Minimum Distribution (RMD) is likely to be extended. That means if you are over age 70½, you can transfer up to $100,000 from your IRA to a charitable gift annuity.

This is something you can do every year and it is an excellent way to use your IRA to generate tax-free income for life.

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Dan Celia has been in financial management for more than 30 years. He works closely with AFA Foundation and can be heard six days a week on AFR Talk (afr.net).

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