IRS gives retirees a longer life in 2022

In early 2020, the CARES Act dropped the required minimum distribution (RMD) requirement for year 2020. However, if you received a RMD from your retirement account in prior years, you may realize that life expectancy tables are used to calculate your annual RMD amount. Don’t miss: IRS transcripts masked for identity protection To calculate an …

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Taxable social security wages are rising for 2021

The Social Security Administration announced a 2021 increase to the amount of wages subject to the old age, survivors, and disability insurance (OASDI) tax. The wage limit was $137,700 for 2020 but will rise to $142,800 starting in 2021. This amount changes each year with the national average wage index. The current Social Security (OASDI) …

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Loans from an IRA – Can you take them?

We see a lot of questions regarding loans from an IRA account. The short answer is you are not allowed to take a loan from an IRA or IRA-based plans such as SEPs, SARSEPs and SIMPLE IRA plans. You also are not permitted to roll over an outstanding loan balance from a retirement plan into …

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Transfer tax and foreign items adjust for inflation in 2021

Transfer tax and foreign tax figures are among those that are adjusted annually for cost-of-living increases. Thomson Reuters Checkpoint has calculated these figures for the year 2021 using the chained Consumer Price Index from August 2020. Don’t miss: Reasonable compensation for S-Corporation shareholder employees The annual gift tax exclusion will remain at $15,000 and the …

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Lower Income in 2020? – Here is a Positive View

During this world pandemic, we have all faced new challenges and may have taken a pay cut or lost a source of income. For some this is viewed as being negative, however there may be a positive light for having lower income this year. Don’t miss: Proposed regulations could make reporting easier for small business …

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Long-term care costs: It’s all about location, location, location

One of the largest concerns of many “more mature” clients is their readiness to pay for long-term care if it becomes necessary. With the nursing home costs median over $100,000 per year, a couple’s liquid assets can quickly evaporate if one or both spouses require long-term care for a number of years. The latest annual …

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Roth IRA contributions for high-income couples

A while back, there was an article from the Wall Street Journal that discussed a way for high-income couples to make Roth IRA contributions. A physician and his wife were maxing out their 401(k) accounts and 457 savings plans, but were ineligible for deductible contributions to a traditional IRA or contributions to a Roth IRA …

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Tax aspects of employee terminations

Although taxes are probably the last thing on your mind after losing or quitting a job, tax aspects of your changed personal and professional circumstances can be significant. Depending on your situation, the tax aspects can be complex and require you to make decisions that can affect your tax picture this year and for years …

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Increased credit for small employer pension plan start-up costs

Do you have a small business? Do you like to save money, especially in taxes? Have you considered setting up a retirement plan for you and your employees, but did not want to spend the money and time getting one set up? Then I have news for you! Starting in 2020, the SECURE Act is …

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What to do with your deceased spouse’s IRA

If your spouse has recently deceased, what should be done with their IRA? To start, you have two options not available to other beneficiaries. Roll the decedent’s IRA into an IRA established in your name (spousal rollover) Elect to treat the decedent’s IRA as your own IRA (spousal election) Don’t miss: Balancing investments in times …

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