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Kyle J. McCauley is the Managing Partner of City Center Financial.

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In the world of retirement planning, there are few issues more important than taxes. After all, taxes can eat away at your nest egg, leaving you with less income in retirement. This is why two recent developments have caught the attention of retirement savers and financial experts alike. These are the Ep 30 Global Minimum Tax Saga and the Inherited IRA Rules.

First, let’s talk about the Ep 30 Global Minimum Tax Saga. This refers to a proposal by the Biden administration to establish a global minimum tax rate for corporations. The idea is to prevent companies from moving their profits to countries with lower tax rates, thus reducing their tax bill.

Currently, the US has a corporate tax rate of 21%, while the global average is around 24%. However, some companies are able to pay much less by using tax havens or other loopholes. For example, Amazon famously paid no federal income tax in 2018, despite making $11 billion in profits.

The proposal for a global minimum tax rate would be a major shift in international tax policy. If it succeeds, it could help to level the playing field between corporations and ensure that they pay their fair share. It could also have implications for retirement savers, since corporate profits contribute to the performance of the stock market.

The second development to watch is the Inherited IRA Rules. These rules pertain to retirement accounts that are passed down to heirs after the account owner’s death. Previously, heirs were able to withdraw the money over their lifetime, using a minimum distribution schedule based on their life expectancy. This allowed them to stretch out the tax-deferred growth of the account and potentially save on taxes.

However, the new rules, which went into effect in 2020, require most heirs to withdraw the entire balance of the inherited IRA within 10 years of the account owner’s death. This can create a significant tax burden, especially if the account is large. It also eliminates the ability to stretch out the withdrawals and potentially reduce the overall tax bill.

There are some exceptions to the new rules, such as for spouses, minor children, and disabled beneficiaries. In these cases, the heirs may still be able to use the old minimum distribution schedule. However, for most people inheriting an IRA, the new rules will apply.

In conclusion, the Ep 30 Global Minimum Tax Saga and the Inherited IRA Rules are two important developments for retirement savers to keep an eye on. While the former could have implications for the performance of the stock market, the latter may impact the amount of taxes heirs will owe when they inherit an IRA. As always, it’s best to consult with a financial advisor to understand how these developments may affect your retirement plan.