Welcome to today’s Connecticut Buzz. I’m Allison Demurs. Ben Fuchs, founder of Fuchs Financial, is here to talk about the new tax and retirement income landscape after some big changes were made by Congress. In addition to being a certified financial planner, Ben is also a certified private wealth advisor professional. Ben, tell us more about what’s new and how it can impact people working hard to have the financial resources they’ll need in retirement. So, we’re talking about the OBBBA, the One Big Beautiful Bill Act. I did not name it. Don’t get mad at me. But there are a lot of changes there. And I feel like this administration has made so many changes almost so fast that it’s easy to get lost and not pay attention to some of the finer details. But this is a scenario where you’ve raised the standard deduction, where they’ve put in different deductions for people that are over 65 but under a certain amount of income. They’ve raised things for us locally in Connecticut, like SALT caps went from $10,000 to $40,000. So there are real opportunities for us to save, and even if you wouldn’t have normally itemized deductions, there may be an opportunity for you to do that and save money. It just takes careful planning. Wonderful. And for people who are working on putting money away now, saving what they can, are there opportunities they can take advantage of? Absolutely. There are certain income limits where once you go over them, you’re no longer getting the deduction. And so there may be a scenario where you were putting money into a Roth IRA and not getting a tax deduction and not reducing your income. And now, you may want to actually put it into a traditional account to lower your income. So there are different ways—I wouldn’t call it manipulation—but looking at your income, looking at how much you can save and deduct is way more favorable now than it ever was before. It really made taxes a little bit more of a game than they were before. And these changes also bring some new possibilities for people headed toward retirement. Decisions made today can make a difference when it’s time to retire. Absolutely. One of the big buzzwords in my industry is Roth conversions—converting money from a traditional account, paying the taxes on it, and putting it into a Roth IRA where it will not be taxed again. You put $10,000 into a Roth, it grows to a million dollars, and you take it out after five years—you’re not taxed on that money again. It’s great for a lot of people, but you have to be much more careful now. When you move money from a traditional IRA, 403(b), 457, or 401(k) into a Roth, you are increasing your taxable income. So you have to be careful about things that could trip you up, like IRMAA and higher Medicare costs, along with new deductions for seniors over 65. You also have to consider Connecticut-specific rules. For example, if you’re under $75,000 in income, you may not pay taxes on Social Security or IRA withdrawals. So there’s a lot to think about, and you need to understand the tax impact before making decisions. There’s so much to consider now. It’s really worth spending time with a professional to understand how the landscape has changed. Since everyone’s situation is different, it’s important to explore what works best for you. We allow people to call in, take a 15-minute call, or meet with us, and we don’t charge for that. If you want to come in after that, we don’t charge for that either. We want to make the process easy and not intimidating. Even something simple like knowing where to park at a new place can feel stressful, so having a call beforehand really helps. The good news is people can navigate these changes. Whether you’re still working or already retired, you can reach out to Fuchs Financial for guidance. The initial consultation is complimentary with no obligation. You can visit taxesandincome.com, review our website, and make sure we’re a good fit before coming in. We have offices in Middletown, Middlebury, Mystic, and West Hartford, and offer phone or Zoom appointments. Again, visit the website or call 860-461-1709 to schedule your complimentary consultation. Thank you for joining us for today’s Connecticut Buzz. I’m Allison Demurs. See you next time.
