According to a recent study by Allianz Life Insurance, 54% of American workers have cut or stopped their retirement contributions to combat the rising prices of inflation. With inflation being at a 40-year high, many taxpayers are also taking early withdrawals from those same accounts to make ends meet.
Inflation can affect a great deal of decisions for taxpayers including when to make tax payments. If the IRS underpayment rate is lower than the US inflation rate, it may pay to wait until a later date with dollars that are worth considerably less. Those same tax dollars could be used for many other things including charity, real estate strategies or other retirement planning.
If you need any assistance with tax planning for inflation, feel free to give us a call.
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