01-12-25 ARI News AM

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Today’s Story

Recent updates to federal tax policies are creating both opportunities and challenges for retirees. The new tax brackets for 2025 slightly reduce the rate for middle-income earners, benefiting retirees who rely on Social Security and distributions from retirement accounts. However, changes to itemized deductions, particularly around medical expenses, may require careful planning to avoid higher tax bills.

For retirees with investment income, updates to capital gains taxes could impact the sale of assets. Financial advisors recommend reviewing your tax strategy now to align with the latest regulations. By staying informed, you can take advantage of potential savings while protecting your retirement nest egg.

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Fun Fact of The Day

Social Security benefits were first taxed in 1984, but only for retirees above specific income thresholds.