Do Trump's Troubles Take Any Heat Off 401(k)s?

Published in Financial Advisor IQ, May 19 2017

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Donna Cuiffo, an advisor at Clarfeld Financial Advisors in Tarrytown, N.Y., is interested in what happens with calls to roll back the Alternative Minimum Tax, or AMT.

Basically, that’s an extra calculation that forces high-income earners to “add back” deductions for items related to state and real estate taxes into the income equation, according to Cuiffo, whose firm manages about $6 billion.

“The AMT really tends to hurt people in high-tax states who earn in the $200,000 to $800,000 range,” she says.

Cuiffo is advising her clients to keep contributing to their 401(k) plans and reassuring families that could be impacted by any change in AMT taxes that she’s closely monitoring events in Washington, D.C.

“We’re letting people know that this new administration’s tax cut plan amounts to a wish list at this point,” says Cuiffo. “More of the meat is going to have to be put on the table before we'll be able to start exploring any of their possible alternative tax planning options."