Green Light for Health Care Reform Law Also OKs New Investment Tax for Those Making Over $200K
Posted Jun 29, 2012 08:52 pm CDT
It isn’t just medical treatment that’s going to change under the new health care reform law given the green light this week by the U.S. Supreme Court.
Now that the law is definitely going to take effect, experts are pondering how a 3.8 percent surtax that is part of the reform package will work. The tax will seemingly apply to a wide array of investment income, the Wall Street Journal reports.
Although the tax is too new for the Internal Revenue Service to have weighed in with guidance, it appears that most taxpayers with an adjusted gross income of at least $200,000 (for singles) or $250,000 (for couples) can expect to feel the additional bite.
Since the tax won’t take effect until Jan. 1 of next year, however, experts are suggesting that taxpayers consider moves that accelerate income into 2012.
Similarly, the new investment tax makes a Roth IRA, with its tax-free withdrawals, more attractive, the newspaper notes.
“I’m telling my clients who have been considering converting from a regular IRA to a Roth IRA, ‘Do it now,’ ” New York accountant Jonathan Horn says.