Since 2002, retirement savers age 50 and over have had the option of making “catch-up” contributions to their 401(k) plans, which stack on top of the regular limits for employee contributions to tax-deferred retirement plans. The amounts were limited to $1,000 per year when they first came out but expanded to $7,500 by 2025. In addition, contributions to tax-deferred retirement plans are excluded from adjusted gross income, resulting in a lower tax bill on income that would otherwise be taxed. For exampl ...

The IRS handed out a hefty tax break to large corporations, ensuring that Trump’s lucrative R&D deduction doesn’t increase their tax bills under a Biden-era levy https://t.co/M6H5nSHrHc ...

Puerto Rico’s residents typically don’t pay U.S. income taxes on income sourced to the island. That, and a special tax break for newcomers, has attracted some rich folks from the states. https://t.co/gX56vm7T75 (📸: Kevin Sabitus via Getty Images) https://t.co/63iKJJPayr ...

RT Paul Atkins (@SECPaulSAtkins).@SECgov has delivered a major tax break to millions of Americans investing to build wealth—with a small yet meaningful structural change.Under @POTUS’ leadership, we'll continue to deliver for American families.https://t.co/nIPQoDV0gp ...

Core Insights - Building a solid nest egg is crucial for financial stability in retirement, as Social Security provides an average of $2,000 per month, which may not be sufficient for many retirees [1] Retirement Account Options - Roth IRAs are popular due to tax-free investment gains and withdrawals, and they do not require minimum distributions, unlike traditional IRAs and 401(k)s [2] - However, a Roth IRA may not be suitable for everyone, particularly in certain financial situations [2] Scenarios to Consider Skipping Roth IRA - If income is rising in 2026, individuals may enter a higher tax bracket, making traditional retirement accounts more beneficial due to the tax break on contributions [3] - Those expecting significant gains in a taxable brokerage account may also benefit from the tax break on contributions offered by traditional accounts [4] - Nearing retirement age with most savings in a Roth account may necessitate contributions to a traditional IRA or 401(k) to ensure some taxable income in retirement [5] - Having taxable income can provide opportunities to claim tax credits and deductions, which may be lost without it [6] - Concerns about premature withdrawals from a Roth IRA may lead individuals to consider traditional accounts instead [7] - Charitable donations may also be impacted by the lack of taxable income, limiting potential deductions [8]

Charitable Giving Motivations - Employer matching contributions are a significant motivator, with approximately 65% of large companies and 28% of small to midsize firms offering this benefit [1] - Tax breaks can be a motivator for charitable giving, but should not be the primary driver [1] Tax Law Changes and Strategies - Starting in 2026, a charitable tax break for nonitemizers will be available, worth up to $1,000 for single filers and $2,000 for married couples filing jointly [2] - For the 2025 tax year, a charitable deduction requires itemizing taxes, suggesting timing gifts for after January 1st if not planning to itemize [3] - In 2026, for taxpayers in the 37% tax bracket, the value of donations will be capped at 35% [3] - High earners may benefit from larger deductions by increasing giving in the current year [4] - Donor-advised funds allow bunching multiple years of gifts into a single year for an upfront charitable deduction [4] - Donor-advised funds enable investment and potential growth of the balance while distributing grants to charities over time [4]

Financial Impact - French tax break cost the government over €55 billion (550 亿欧元) last year [1]

Tax Policy Change - Italy plans to increase the flat levy on foreign income by 50% for wealthy new residents [1] Impact on Residents - The increased levy targets wealthy new residents who have moved to Italy to benefit from the tax break [1]

Founder Departure - Digital banking app cofounder Nik Storonsky has left the United Kingdom following the removal of a tax break [1] - The departure is part of a larger trend of wealthy founders and investors leaving the UK [1]

A criminal investigation that led to raids of Northern Data’s offices last week is focused on whether the company illegally claimed a tax break on about €500 million ($586 million) worth of high-performance computing chips, sources say https://t.co/Q7AlQJwmr1 ...