What Will Washington Tinker with Next

What they will not do is waive the Required Minimum Distribution (RMD) like they did in 2020. Taxpayers 72 years old and older must take an RMD by the end of 2021. However, if you turned 72 this year your deadline for the distribution is April 18, 2022. There are some other exceptions if you keep working but the exceptions do not come without strings.

The Corporate income tax rate is expected to rise from 21% to 28%. Most of President Biden’s targets are large corporations but despite his pledge not to raise taxes on those making less than $400,000, don’t count on it. If the corporate rate goes up, I can’t see how they would be able to continue the 199A deduction. The 199A deduction is the 20% of business income deduction small businesses get to compensate for the fact that they are not incorporated. If the Corporate business got tax relief under President Trump it was only fair for the LLCs and partnerships to get a 199A deduction.

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