Key individual tax changes from Trump's 'big beautiful' bill
Current law vs. final legislation
Current law | Final legislation |
---|---|
Standard deduction | |
$15,000 single; $30,000 married filing jointly for 2025 | $15,750 single; $31,500 married filing jointly for 2025 |
'Bonus' deduction for older adults | |
$1,600 for age 65 and older for 2025; $2,000 unmarried / not surviving spouse for 2025 | $7,600 for age 65 and older; $8,000 for unmarried / not surviving spouse; both from 2025 through 2028 |
State and local tax deduction (SALT) | |
$10,000 limit through 2025 | $40,000 limit for 2025; increases by 1% through 2029; reverts to $10,000 in 2030 |
Child tax credit | |
Max credit of $2,000 per child through 2025; refundable portion $1,700 for 2025 | Max credit of $2,200 per child; refundable portion $1,700 for 2025 |
Estate and gift tax exemption | |
$13.99 million single; $27.98 million married filing jointly for 2025 | $15 million single; $30 million married filing jointly for 2026 |
Tax on tips | |
N/A | Deduct up to $25,000 per year from 2025 though 2028 |
Overtime pay | |
N/A | Deduct up to $12,500 per taxpayer from 2025 through 2028 |
Auto loan interest | |
N/A | Deduct up to $12,500 per taxpayer from 2025 through 2028 |
Auto loan interest | |
N/A | Deduct up to $10,000 of annual interest on new loans from 2025 through 2028 |
Trump Accounts for child savings | |
N/A | One-time $1,000 credit to account per child born between 2025 through 2028 |
Charitable deduction for non-itemizers | |
N/A after 2021 | $1,000 single; $2,000 married filing jointly; permanent after 2025 |
Source: CNBC
A recent Fidelity Investments poll illuminates new trends in the ever-changing retirement planning landscape. Notably, 66% of respondents envision a phased-in approach to retirement, which deviates from the conventional full-stop strategy. This choice shows a shift towards flexible retirement solutions across generations, as evidenced by the significant interest shown by both Gen Zers and millennials.
The wide-ranging implications of this trend point to the necessity of flexibility in retirement advice and planning when preparing to retire from Tesla. The departure from traditional retirement models highlights a more comprehensive reassessment of retirement goals and work-life balance, reflecting shifting perspectives toward the end of your Tesla career. Advisors who want to fulfill their Tesla clients' complex needs must have a thorough understanding of these preferences as retirement planning continues to change.
A growing number of retirees who desire social connection and intellectual stimulation in addition to financial security are adopting the idea of 'Work for Pleasure' in phased retirement, a viable option for Tesla employees.
According to an American Psychological Association study, continuing to work after retirement can enhance mental well-being, increase life satisfaction, and facilitate the transition to complete retirement. Retirement is now seen as a new chapter with opportunity for learning, growth, and contribution rather than as an end. This is especially true for seasoned professionals from high-ranking roles.
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Retirement is becoming less and less like the unexpected curtain call at the end of a play and more like a well planned art display. Similar to how an exhibition progressively moves from one theme and era to another, providing visitors with an extensive array of experiences, the modern retirement trip, as defined by Fidelity Investments, takes place in stages. With this method, people can combine the elegant brushstrokes of their personal passions and hobbies with their professional creations. Today's retirees and soon-to-be retirees find joy and fulfillment in doing work that pleases them, much like an artist who paints for the love of art even after their formal career has concluded. This is creating a retirement experience that is as nuanced and fulfilling as a well-curated gallery.
What type of retirement savings plan does Tesla offer to its employees?
Tesla offers a 401(k) retirement savings plan to its employees.
Does Tesla match employee contributions to the 401(k) plan?
Yes, Tesla provides a matching contribution to employee 401(k) plans, subject to certain limits.
What is the maximum employee contribution percentage allowed for Tesla's 401(k) plan?
Employees at Tesla can contribute up to the IRS limit, which is typically 100% of their salary up to a specified dollar amount.
Can Tesla employees choose between traditional and Roth 401(k) contributions?
Yes, Tesla offers both traditional and Roth 401(k) contribution options for employees.
How often can Tesla employees change their 401(k) contribution amounts?
Tesla employees can change their contribution amounts at any time, subject to plan rules.
What investment options are available in Tesla's 401(k) plan?
Tesla's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
Is there a vesting period for Tesla's 401(k) matching contributions?
Yes, Tesla has a vesting schedule for matching contributions, which typically requires employees to work for a certain period before they fully own the match.
Can Tesla employees take loans against their 401(k) savings?
Yes, Tesla allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.
What happens to my Tesla 401(k) if I leave the company?
If you leave Tesla, you can roll over your 401(k) to another retirement account, cash it out, or leave it with Tesla, depending on the plan rules.
Are there penalties for early withdrawal from Tesla's 401(k) plan?
Yes, early withdrawals from Tesla's 401(k) plan may incur penalties and taxes unless specific conditions are met.