A little bit of insight to share

Here are some bullet points that came across my desk today.  I hope they help make some senses out of the passage of the recent Acts.

Highlights of the SECURE Act include:

Age restrictions on contributions to a Traditional IRA have been eliminated

  • For clients born on or after July 1, 1949, the age for starting required minimum distributions
  • (RMDs) has been increased to 72
  • Beneficiary distribution choices for deaths that occur starting in 2020 have been changed/updated
  • Distributions for qualified birth or adoption expenses are penalty-free up to $5,000

Highlights of the CARES Act include:

  • RMDs, including those from Beneficiary IRAs, have been waived for 2020
  • Coronavirus-related distributions (CRDs) are penalty-free up to $100,000 through December 30,
  • 2020
  • CRDs can be repaid over three years, or taxes can be spread over three years

All RMDs have been waived for tax year 2020

All RMDs have been waived for tax year 2020, meaning clients will not need to take an RMD from their retirement account for this year.

If clients have already taken all or part of their RMD within the past 60 days, they can re-contribute that amount back into their retirement account, assuming the distribution qualifies for a rollover.

For more information, reach out to the custodian or advisor of the accounts.

The SECURE Act Offers New Opportunities for Individuals and Businesses

The SECURE Act (Setting Every Community Up for Retirement Enhancement Act) is major legislation that was passed by Congress as part of a larger spending bill and signed into law by the president in December. Here are a few provisions that may affect you. Unless otherwise noted, the new rules apply to tax or plan years starting January 1, 2020.  Continue reading “The SECURE Act Offers New Opportunities for Individuals and Businesses”