Preview Mode Links will not work in preview mode
The Human Capital podcast brings you the latest on the people who are helping to shape the financial services regulatory landscape, be they lawmakers, attorneys, industry officials or lobbyists. We'll get inside views from the movers and shakers on how various policy matters are impacting the advisory industry. Hosted by Melanie Waddell, Washington Bureau Chief for Investment Advisor Magazine and, this bi-weekly podcast complements the weekly Human Capital briefing. 

Sep 18, 2020

In this episode, we check in with IRA and tax specialist Ed Slott of Ed Slott & Co., on what the recent debt and deficit numbers reported by the Congressional Budget Office mean for retirement plan participants.

The CBO numbers, according to Slott, show that the three-legged retirement planning stool is shaky, and for clients with a 401(k) plan or IRA, “these plans have not yet been taxed so they’re sitting ducks for future higher taxes, and that’s exactly what’s going to happen” because of the deficit and debt numbers.

Slott maintains: “There’s no way taxes are going to decrease, that’s for sure” regardless of who wins the White House.

“At some point the debt has to be paid down; it’s out of control, it’s consuming our entire national output, so that puts most peoples’ retirement savings at risk of the uncertainty of what future higher taxes will do.”

Slott also talks about the importance of Roth IRA conversions now, provides stretch IRA reminders, and talks about the dangers of excessive trading.