On this episode of Adam Talks, tax attorney and IRA Financial’s founder, Adam Bergman, Esq., discusses the potential impacts of the upcoming presidential election on individual retirement accounts and the proposed policies of both candidates.
Trump, Biden, & Your IRA – Episode 447
This week’s episode opens with tax attorney Adam Bergman discussing the potential impact of the 2024 presidential election on IRAs (individual retirement accounts). He provides a bipartisan perspective, focusing on the taxation and regulations surrounding self-directed retirement accounts. Bergman emphasizes that his analysis is not politically motivated but aims to inform listeners about possible changes to their IRAs under either a Biden or Trump administration.
Bergman compares the proposed IRA-related policies of President Biden and former President Trump. He notes that Biden’s 2025 budget proposal includes measures such as eliminating the “Backdoor Roth IRA” for high earners and requiring significant distributions from IRAs exceeding $10 million in value. These proposals, according to Bergman, aim to prevent wealthy individuals from further accumulating tax-advantaged retirement funds, though he doubts these measures will pass due to lack of broad support.
In contrast, Bergman points out that Trump’s campaign has not released specific plans for IRAs. However, based on Trump’s previous term, there is no indication that he would introduce restrictive changes to IRAs or Roth IRAs. Trump’s administration had been generally pro-retirement and did not advocate for limiting retirement accounts or Roth conversions.
The podcast also touches upon broader tax policies proposed by Biden. These include raising corporate tax rates, applying wash sale rules to digital assets, and increasing long-term capital gains tax rates for high-income individuals. Bergman highlights that these proposals reflect Biden’s alignment with the progressive wing of the Democratic Party, which focuses on taxing the wealthy more heavily.
On the other hand, Trump’s tax policy proposals, as discussed by Bergman, include lowering the corporate tax rate slightly and making the individual tax cuts from the 2017 Tax Cuts and Jobs Act permanent. Trump also suggests replacing personal income tax with increased tariffs and exempting tips from income taxes, though Bergman expresses skepticism about the feasibility of these ideas.
In conclusion, Bergman advises listeners to stay informed and vote based on the issues important to them. He reassures that regardless of the election outcome, significant changes to IRAs are unlikely. While Biden may propose more restrictions on IRAs, these measures are not expected to gain traction. Ultimately, Bergman underscores the importance of participating in the electoral process and making decisions based on a comprehensive understanding of the candidates’ positions on various issues.
