On January 20, 2009, Barack Obama will take the oath of office as the 44th president of the United States. Federal tax policy is guaranteed to be at the forefront of President Obama’s agenda. Democrats in Congress are preparing an economic stimulus package, which they hope to have ready for the new president’s signature on January 20. It is likely to include significant individual and business tax incentives.

Over the past several months, we have been sending information to you about proposed tax policies, and we will continue to send news to you as soon as it is available. Some recent good news to note right now are:

• Increase in tax rates for higher income individuals currently not expected to occur in 2009 (will likely occur in 2010).
• Capital gains rate is not currently expected to increase from 15% to 20% until 2010.
• For the calendar year 2009, no minimum distribution is required from individual retirement plans and employer-provided qualified retirement plans that are defined contribution plans. Thus any annual minimum distribution for 2009 from these plans required under current law is not required to be made and the next required minimum distribution would be for calendar year 2010. This relief applies to life-time distributions to employees and IRA owners and after-death distributions to beneficiaries.

What are your thoughts and questions about the changes in tax law that will be coming in 2009. Please post a comment for discussion.