Planning for retirement is a primary consideration for individuals.
An overlooked SECURE Act change is that businesses can adopt new qualified plans and make deductible contributions after the close of the tax year. They must act before the due date for filing the employer’s return (including extensions). That means for solo 401(k) plans, individuals can adopt a plan and make contributions by May 17, […]
Solo 401k Plans Benefit from SECURE Act Read More »
The Internal Revenue Service announced cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021 in Notice 2020-79, posted today on IRS.gov.
Income Ranges for Determining IRA Eligibility Change for 2021 Read More »
The Internal Revenue Service reminds IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) this year that they have until Aug. 31 to rollover or repay the distribution to avoid paying taxes.
Deadline to Return Distributions to Retirement Accounts Aug. 31 Read More »
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 »
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 »
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 »
Taxpayers receiving Social Security benefits may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They don’t include supplemental security income payments, which aren’t taxable.
Social Security Benefits May Be Taxable Read More »
For retirees, one of the beneficial features of the Coronavirus Aid, Relief, and Economic Security (CARES) Act is the waiver of required minimum distributions (RMDs) for 2020, even if you are unaffected by the coronavirus. Retirees can avoid liquidating assets at low prices and can mitigate frightening drops in their account balances. Retirees need to
CARES Act – Required Minimum Distribution Waiver for 2020 Read More »
The SECURE Act as passed at the end of 2019 pushes back the beginning date for required minimum distributions (RMDs). It also replaces the life-expectancy distribution period for non-spouse designated beneficiaries with a 10-year distribution period.
SECURE Act – Required Minimum Distribution Changes Read More »
The 199A deduction is one of the most complex parts of the 2017 Tax Cuts and Jobs Act. A couple of its features can have a big impact on retirement planning, and can allow taxpayers to deduct up to 20% of their qualified business income (QBI).
199A Features Have a Big Impact on Retirement Accounts Read More »