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 they’ve raised the standard deduction, put in different deductions for people that are over 65 but under a certain amount of income. They’ve also raised things for us locally in Connecticut, like the SALT cap, which went from $10,000 to $40,000. So there are real opportunities for us to save. 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. So there may be a scenario where you were putting money into a Roth IRA and not getting a tax deduction or reducing your income. 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, how much you can save, and what you can deduct is way more favorable now than it ever was before. It really made taxes a 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 right now 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 wonderful 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 watch out for things that could trip you up—like IRMAA, where you pay extra taxes on Medicare, as well as the new standard deductions and senior deductions for those over 65. You also have to consider Connecticut-specific laws. For example, if you’re a single filer under $75,000 in income, you may not pay taxes on Social Security or IRA withdrawals. So there are a lot of things to navigate carefully and understand before making decisions. Well, there’s so much to consider now. It’s really worth spending time with a professional to learn how the landscape has changed. Since everyone’s situation is different, it’s important to explore what works best for you. Yeah, absolutely. We allow people to call in and take a 15-minute call or meet with us—we don’t charge for that. If you want to come in for an appointment after that, we don’t charge for that either. I think it’s important to help people get their bearings in a way that’s not intimidating. Even something like going to a new doctor’s office—you worry about where to park or how to get in. Having a simple call first can make the whole process easier. The good news is people can navigate through the new law and all the changes coming up. Whether you’re still working or already retired, you can get guidance with your financial planning by reaching out to Fuchs Financial. Your initial conversation is complimentary and there’s no obligation. We’re happy to answer your questions. You can go to taxesandincome.com, check out our website, and make sure we’re a good fit before coming in. We have offices in Middletown, Middlebury, Mystic, and West Hartford, and we offer appointments by phone or Zoom—whatever works best. Again, just visit their website or call 860-461-1709 to set up an appointment for your complimentary consultation. Thank you for joining us for today’s Connecticut Buzz. I’m Allison Demurs. See you next time.
