Because of the Tax Cuts and Jobs Act, there are several age-related tax and financial planning milestones to keep in mind.
For people ages 0-23, investment income is taxed at federal rates for trusts and estates. Custodial accounts will revert to the child’s control at age 18 or 21 depending on the state. Those over 50 can make additional contributions to some retirement plans. Individuals age 55 and older can receive penalty-free retirement account payouts. And Social Security benefit payments will be higher if they are deferred until age 70 or later.
There are many key age-related milestones to remember when tax planning.