When people think of tax-free retirement savings, they think of IRAs and 401(k)s. The problem with those, however, is they are taxed. Either the distributions are taxed at retirement or the contributions are taxed when earned. Health Savings Accounts (HSAs) do not share that problem. HSAs do come with one big problem, however. You cannot […]
Health Savings Accounts as Retirement Savings Plans Read More »
Tool plans that claimed to pay employer reimbursements or rental fees to employees who used their own tools in their jobs were abusive tax schemes. The Tax Court imposed civil penalties on two executives of CMS, the company that developed the arrangements and falsely marketed them as accountable plans to reimburse employee expenses. Why Mischaracterize
Tool Reimbursement, Rental Arrangements Were Abusive Tax Schemes Read More »
People whose adverse financial consequences count for getting a coronavirus-related distribution now include spouses and other household members. The IRS has also clarified with lots of examples the thorny intersection between recontributions, taxes, and amended returns. The new IRS guidance presents the rules set out in Act Sec. 2202 of the Coronavirus Aid, Relief, and
Coronavirus Distributions and Adverse Financial Consequences Read More »
People who are working from home in response to the coronavirus pandemic may be looking forward to claiming a home office tax deduction. However, most will be disappointed.
Home Office Deduction Doesn’t Benefit Everyone Who Works from Home Read More »
The Coronavirus Aid, Relief and Economic Security (CARES) Act was intended to provide relief in response to the COVID-19 (Coronavirus) crisis. However, some non-COVID related items were also buried in the bill. These include temporary and permanent changes to:
Coronavirus Insurance and Coverage Changes for HDHPs, HSAs, FSAs and HRAs Read More »
The Setting Every Community Up for Retirement Enhancement (SECURE) Act requires 401(k) and other account-based plans to disclose the lifetime income stream employees can expect at retirement. Most employees under save, so this information should be a wake-up call for them. More diligent savers can learn if they are on the right track.
SECURE Act: Lifetime Income Stream Disclosure Read More »
SECURE Act, CARES Act & IRS COVID-19 responses impact many taxpayers Many legislative and regulatory changes enacted in the past several months directly impact qualified retirement plans and are most helpful to many taxpayers but not all.
New Legislative & Regulatory Changes Affect Retirement Planning Read More »
People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received.
Keep Economic Impact Payment Notice with Tax Records Read More »
The gig economy, also called sharing or access economy, is an activity where taxpayers earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website. While there are many types of sharing economy businesses, ride-sharing and home rentals are two of the most popular.
Gig Economy Tips Taxpayers Should Remember Read More »
The Internal Revenue Service released Notice 2020-50 (PDF) to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans. This includes expanding the categories of individuals eligible for these types of distributions and loans (referred to as “qualified individuals”) and providing
Taxpayers Affected by COVID-19 Who Take Distributions or Loans From Retirement Plans Read More »