Welcome Summer

Alex:

Hello everyone, and welcome to this week’s biweekly commentary. I’m Alex Phillips, and I’m joined today by my colleagues, Tom Boh and Kelly Heppe.

Before we dive in, I have a few quick updates to share, starting with a brief market overview:

Since our last update, we’ve seen a 90-day pause in tariffs between the U.S. and China, designed to facilitate ongoing trade negotiations. As a result, tariff rates on Chinese goods have dropped from 145% to approximately 30%.

Markets reacted positively to this news, and several firms have adjusted their recession forecasts. For instance, our partners at Strategas, a Baird company have revised their outlook, reducing the odds of a recession from 45% to 35%.
With that, I’ll pass it over to Tom.

Tom:

Thanks, Alex.

Just a quick note: You recently received an email about a special edition of our Experts Unplugged series, taking place next Wednesday, May 28th, from 12:00 to 1:00 PM.

We’ll be featuring Heath McAteer, our in-house tax specialist here at Baird. Heath, a CPA and CFP®, will guide us through the tax analysis software we use to help clients identify planning opportunities. He’ll also provide an update on the latest tax legislation making its way through Washington. We’re excited for the session and hope you can join us.

Now, over to Kelly.

Kelly:

Thanks, Tom.

A quick team update: Amanda DePriest, who has been with us since 2022, has decided to explore a new opportunity outside of our team. It’s been a pleasure working with her, and we wish her all the best in her future endeavors.

Looking ahead to the long weekend, please note that our office will close early on Friday and will remain closed on Monday in observance of Memorial Day.

Wishing you all a wonderful start to the summer, and as always, thank you for your continued trust and confidence.

Happy Memorial Day!

2025 Tax Tables

As we’ve done in previous years, we mailed the 2025 tax tables to each of you. We hope this resource is a helpful tool throughout the course of the year. Pay particular attention to the retirement plan limits, most have increased and there is a new special contribution allowance for individuals working and contributing to employer sponsored plans between the ages of 60-65. Please reach out if you have any questions!

More on Taxes: 5498 Tax Documents

This week, Baird released additional 2024 5498 tax forms to IRA owners who contributed to their IRA last year OR if there was an update/correction to the document. You are not required to file this form with your tax return, it is sent by Baird directly to the IRS. Therefore, no action is required on your part! Don’t hesitate to reach out to our team if you need more information.