2016 Taxes: What's on Deck for Your Investments
Higher HSA contribution limits, myRA introduction are among bigger tax changes this year.
Note: This article is part of Morningstar's February 2016 Tax Relief Week special report. An earlier version of this article appeared Jan. 7, 2016.
Compared with the "fiscal cliff" and other year-end escapades, the tax-related drama in Washington has been pretty subdued in recent years. Dividend and capital gains tax rates have stayed the same, and the federal estate tax will still only affect the uber-rich. (State estate taxes may kick in at much lower levels, however.) But that's not to suggest that investors can safely tune out tax considerations. The market's strong performance since 2009, combined with another nasty season for mutual fund capital gains distributions in 2015, accentuates the value of taking maximum advantage of tax-sheltered wrappers like 401(k)s and IRAs. It also highlights the virtues of carefully monitoring your taxable positions to help ensure that you're not paying more in dividend and capital gains taxes than you need to.