Wealthy investors may be in for a capital gains tax hike. Here’s how they’ll manage

• President Joe Biden proposed raising the top rate on long-term capital gains to 39.6% from 20%. The tax hike would apply to households making more than $1 million.
• These higher taxes would apply to taxable brokerage accounts, but not tax-deferred accounts, which include 401(k) plans.
• Higher income investors may find ways to manage the taxes owed, including making deductible charitable donations and weighing tax-managed investment strategies to minimize capital gain distributions.