Tax law changes could still affect a 'relatively quiet' season

This tax season may not have the hype when measured against the "fiscal cliff" and other issues of the recent past. But that doesn't mean that financial planning is any less important. 

"The end of 2014 is shaping up to be relatively quiet when compared to the challenges of recent years. But after this year's mid-term elections, there's a "lame duck" Congress that needs to fund the operations of the federal government," says Robert Fishbein, a vice president and corporate counsel in Prudential's Tax Department. "So there is always the possibility of tax law changes affecting current income tax and financial planning." 

For the time being, Fishbein notes, we know what current law provides and how we need to plan. "For example," he explains, "we can take steps now to avoid under withholding, minimize the effect of capital gains taxes and stay below the threshold for the 3.8 percent investment tax." 

In addition, Fishbein adds, you may consider converting retirement assets to a Roth IRA, making contributions to an IRA and planning for the renewal of a tax provision allowing tax-favored charitable contributions with IRA funds. 

Interested in more information? Watch a video of Robert providing six year-end tax planning tips. Want to speak with Robert? Contact Lisa Bennett.

Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances.

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