The IRS has announced the federal income tax brackets for 2027, and although the seven marginal tax rates remain unchanged at 10%, 12%, 22%, 24%, 32%, 35%, and 37%, the income thresholds are increasing to account for inflation. The standard deduction is also rising, to $16,600 for single filers and $33,200 for married couples filing […]
Category: QUESTIONS
How Have U.S. Income Taxes Changed Since 1913?
Federal income taxes in the United States have changed enormously since 1913, when the modern income tax began with a top marginal rate of just 7%. That rate climbed to 94% during World War II, declined substantially during the tax reforms of the 1980s, and stands at 37% in 2026. Over those 113 years, Congress has […]
Selling Your Business Is a Financial Decision, Not Just a Transaction
How business valuation, transaction planning, and coordinated financial advice can help protect your financial future. By Peter Catalano, ChFC®, CLU® | Catalano Financial Imagine spending 25 years building a successful business. You’ve invested your money, developed customer relationships, managed employees, and worked through countless challenges. Then, one day, someone offers you $5 million to buy […]
What Is a Mega Backdoor Roth, and Can Business Owners Still Use One Before Year-End 2026?
A mega backdoor Roth is a retirement savings strategy that allows eligible individuals to contribute additional after-tax dollars to a 401(k) and then convert those contributions into Roth retirement savings. For 2026, the regular employee 401(k) contribution limit is $24,500, but the combined employee and employer annual additions limit can reach $72,000, excluding eligible catch-up […]
How Can I Reduce Taxes on Retirement Withdrawals?
You may be able to reduce taxes on retirement withdrawals by carefully choosing which accounts to draw from, managing how much taxable income you recognize each year, considering Roth conversions, planning ahead for required minimum distributions, and coordinating investment decisions with your tax professional. The best approach depends on your retirement income needs, the accounts […]
How Do Income Taxes Affect My Retirement?
Income taxes affect how much of your retirement savings you can actually spend, which accounts you should consider withdrawing from, and how long your financial resources may need to last. Withdrawals from traditional IRAs and 401(k)s, Social Security benefits, pensions, investment accounts, and annuities can all receive different tax treatment. Coordinating these income sources can […]
You Sold Your Business. Now What?
Turning business equity into financial independence, lasting wealth, and a meaningful legacy. By Peter Catalano, ChFC®, CLU® | Catalano Financial | The Woodlands, Texas Selling your business is a major accomplishment. After years of building a company, managing employees, serving customers, and creating equity, you’ve reached an important milestone. However, the sale also brings a […]
How Can I Grow My Business While Building Personal Wealth?
Building Business Value and Personal Wealth Through Coordinated Financial Planning You can grow your business while building personal wealth by treating your company as a financial asset and making business decisions that support your personal financial goals. That means evaluating expansion, financing, reinvestment, and succession decisions alongside your family’s needs, investment strategy, retirement plans, and long-term […]
AUM Fees vs. Comprehensive Wealth Management: What Does a Financial Advisor Cost?
What’s the difference between paying a financial advisor a percentage of your investments and paying a fixed annual fee for comprehensive wealth management? An assets under management (AUM) fee is based on the value of your investment portfolio, while a comprehensive wealth management fee is based on the scope of financial advice and coordination you […]
You Won the Lottery. What Should You Do Before Spending or Investing?
Winning the lottery can change your financial life overnight. Whether you’ve won several hundred thousand dollars or a multimillion-dollar jackpot, the decisions you make in the weeks and months that follow can influence your financial future for decades. It’s natural to think about paying off debt, buying a home, helping family members, or leaving your […]