Managing Your Wealth Plan as Inflation Stabilizes and Tariffs Loom

There are a few counterbalances to inflation. Marginal tax brackets are indexed for inflation – meaning that if income remains unchanged from last year, taxpayers could see a lower effective tax rate. Additionally, higher contribution limits for retirement plans, including catch-up contributions, provide an opportunity to defer taxes on more income. Borrowers with fixed-rate debt, such as mortgages, may also benefit, as the money repaid over time is worth less than the amount originally borrowed.