Big changes in IRAs – Expanding the definition of earned income

Recently, Congress passed and the President signed the SECURE Act “Setting Every Community Up for Retirement Enhancement”. This new legislation is the first major retirement reform since the Pension Protection Act in 2006. Don’t miss: IRA contribution and distributions to charity Many changes in the SECURE Act affect both 401k’s and IRA’s but one of …

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Required minimum distribution age raised with SECURE Act

As many know, the rule prior to the new SECURE Act stated required minimum distributions (RMDs) from traditional IRA or other qualified retirement plans were required to be taken by April 1 following the year a taxpayer reached the age of 70 ½. This rule is still in place for people who turned 70 ½ …

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SECURE act changes deadline for retirement plans

Near the end of 2019, congress passed the Setting Every Community Up for Retirement Enhancement Act, or as most people call it, the SECURE Act. If you are a frequent reader of our blogs, you’ve probably noticed that we’ve had quite a few about the SECURE Act and all of the changes it made going …

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Don’t get trapped with the IRA 60 day rollover rule

Deadlines can be very stressful, especially when it comes to taxes. One stress that many people are not aware of is the 60-day deadline for keeping an IRA rollover tax-free. Why you may ask? Because missing the 60 day rollover rule can result in taxable income — and if you’re under age 59½, you may …

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5 Tips to determine if your Social Security is taxable

You may not realize the Social Security benefits you received in 2018 may be taxable. You should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of your benefits. You can use this information to help determine if your benefits are taxable. Here are five tips from the IRS to …

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Health savings accounts as retirement savings

Three words: triple tax free. The contributions are tax deductible, the earnings are not taxed and distributions are tax free if they are used for qualified expenses. This is the main advantage and beauty of Health Savings Accounts (HSAs). While Roth and traditional retirement savings accounts will almost always result in taxable income (now, or …

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Retirement contribution limits increasing in 2019

The IRS recently issued technical guidance relating to changes for pension plans and retirement accounts for tax year 2019. The biggest changes relate to the amounts employees can contribute to various types of retirement plans. The good news for you is that retirement contribution limits are going up. Retirement contribution limits The contribution limit for …

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How can you benefit from an 83(b) election?

When is an 83(b) election appropriate to make and what are some of the benefits from it? Section 83 applies to employees who receive stock that is subject to vesting. It is an election that would allow the taxpayer to be taxed at the time of the receipt of the property. There are various examples …

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Treasury ends myRA low income retirement savings plan

The myRA (“my retirement account”), a savings account designed to help low and middle-income savers put money away for retirement, is being shut down by the U.S. Treasury Department. Citing lack of participation relative to the cost of maintaining the program, U.S. Treasurer Jovita Carranza, stated “The myRA program was created to help low to …

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Foreign earned income exclusion & retirement savings

Do you think your accountant asks you too many questions? Do you feel interrogated? I’d just like to remind you that we are on your side and we aren’t the ones issuing penalties. We are here to help prevent those penalties, but we can only use the information that is given to us (shocking, I …

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