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There are so many factors to consider, but one may be thefinancial implicationseach candidate might have.
Here are some money moves you may want to make in the event of a Harris victory.
Maximize Tax-Advantaged Account Contributions
If elected president, Harris may propose tax changes.
Changes could also include increasing tax rates for the highest earners.
One account to consider is a Roth conversion, often called a backdoor Roth IRA.
With a backdoor Roth IRA, you could convert nondeductible contributions from a traditional IRA into a Roth IRA.
This is typically done by someone whose income is too high for a Roth IRA.
With a Roth IRA, your money can grow tax-free, and you might withdraw theconverted amount tax-freein retirement.
Also, unlike traditional IRAs, you dont have to take the required minimum distributions from the accounts.
However, you will pay taxes on the converted investment by taking advantage of a backdoor Roth IRA.
It would make sense to go through this process now while tax rates are lower.
You will only need to pay estate tax if the value of your taxable estate exceeds this limit.
Also, assets inherited by your spouse, if aU.S.
citizen, are not subject to estate tax.
In 2024, the exclusion is $18,000 perrecipient, gifter and year.
There is no limit to the number of different gift recipients.
You could establish an irrevocable trust if you are not ready to give the money away yet.
An irrevocable trust is one that the creator cant change or revoke after the assets are in the trust.
Irrevocable trusts can minimizefuture estate taxesand help avoid the probate process upon death.
The Harris tax plan calls for eliminatingcertain grantor trust benefits, which could significantly impact existing estate plans.
Reviewing and potentially restructuring trusts ahead of changes may mitigate tax issues down the road.
Tax incentives for having energy-efficient or renewable energy items installed in your home may increase with a Harris presidency.
This could also be a great time to consider investing in green energy companies.
Because of Harriss policies, many of these companies with strong financials could see a significant boost.
However, there is a strong likelihood these rates could increase under a Harris presidency.
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