With key Trump tax cut provisions set to expire at year-end, nearly nine in 10 certified financial planners, 88%, believe their clients’ financial objectives face substantial risks, according to the just-released 2025 CFP Professionals Taxes Survey.
While those provisions, including reduced income tax rates and the doubling of the lifetime estate and gift tax exemption, are widely expected to be renewed, nothing is certain.
More than half of respondents in the Certified Financial Planner Board of Standards' survey said their clients' retirement income and legacy plans were vulnerable to upcoming tax changes.
Other at-risk financial planning goals include charitable giving strategies, cited by 18% of planners, business succession (16%) and real estate investment plans (8%).
CFPs are recommending specific strategies for 2025, including Roth conversions (64%), increased retirement plan contributions (64%) and tax-loss harvesting (61%).
These recommendations address clients’ top concerns: retirement account taxation, current income tax exposure and the impact of potential tax rate changes.
"To improve tax efficiency, financial professionals are implementing comprehensive approaches," the CFP Board said, with three in four using strategic timing of capital gains and tax-efficient retirement income strategies.
Further, 71% of CFPs are maximizing tax-deferred accounts to help protect client wealth before the TCJA provisions expire.
Financial Advice Tax Breaks
The research found that the elimination of tax deductions for financial advice in the 2017 tax overhaul has created barriers to professional guidance, with 52% of CFPs reporting negative effects on consumer access.
"To expand access to financial planning services, many CFPs advocate for an above-the-line tax deduction (46%) or the implementation of a tax credit system (39%) — solutions that could help more Americans obtain the professional financial guidance needed to navigate upcoming tax changes," the survey report stated.
“As we approach the expiration of TCJA later this year, restoring and expanding tax incentives for financial advice could help ensure that more Americans have access to the professional expertise they need to navigate these significant changes and build the future they envision," said Erin Koeppel, managing director of government relations and public policy counsel at CFP Board, in a statement.
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