If you haven't done so already, you need to explain to clients, especially your high-income clients, how portions of the Patient Protection and Affordable Care Act could add to their tax burden.
The crucial change will be a 3.8% surtax on investment income. For most clients, investment income consists primarily of interest, dividends, capital gains, non-qualified annuity distributions, and rental and royalty income. Traditional IRA distributions, as well as Roth conversions and distributions from company plans, are not considered investment income - and yet these distributions can trigger the 3.8% surtax.
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access