Guidance on Re-Hiring Retirees
The IRS in a news release stated that employers may rehire former employees even if they have already retired and begun receiving benefits. On top of this the IRS stated, “Also if permitted under plan terms, those employees may continue receiving the benefits after they are rehired. Moreover, an employer can generally choose to make retirement distributions available to existing employees who have reached age 59 ½ or the plan’s normal retirement age. This may assist in the retention of employees eligible for retirement.” Hopefully, this guidance will be able to take some of the strain off of the labor market and assist in regaining normalcy.
Wealth Tax Likely to be Utilized
Janet Yellen went on CNN Sunday to speak on this proposed tax saying, “I wouldn’t call that a wealth tax, but it would help get at capital gains, which are an extraordinarily large part of the incomes of the wealthiest individuals and right now escape taxation until they’re realized.” Those familiar with the proposed plan say that it would likely only affect those either with $1 billion in assets or $100 million in income for three consecutive years.
Child Tax Credit Crisis
Democrats are still attempting to figure out a way to make this manageable and are considering many options for edits. There has been discussion about reducing the family income cap to qualify for this credit from $150,00 for married couples ($112,500 for single head-of-household), all the way down to around $60,000 per family. It was also proposed that parents in the household must hold a job in order to qualify for the credit.
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