Update to inherited IRA rules

Only a few short weeks ago I wrote a blog detailing proposed regulations passed by the IRS that seemingly contradicted other guidance they had put out. A major concern at this time was that beneficiaries of inherited IRAs had inadvertently missed taking out a required minimum distribution (“RMD”) for 2021. Now there’s been an update …

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Inherited IRA rules change

In typical IRS fashion, over two years after the SECURE Act was passed in 2019, proposed regulations have been issued to clarify the rules. Among the proposed regulations was new guidance on inherited IRA rules relating to what has been referred to as the “ten-year rule”, conflicting with prior IRS guidance and causing confusion for …

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First-time home buyer? Talk to your CPA.

Buying a home can be a stressful process, especially if it is your first time. In a normal market, the administrative, legal, and financial requirements are enough to overwhelm even the most prepared home buyers. And as we all know, the real-estate market has been anything but normal lately. This has further increased the financial …

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What to do if you inherit an IRA

One of the hardest parts about losing a loved one is sorting out their finances during a time of grief. During those tough times, the last thing you want to worry about is making sense of the inherited IRA rules. However, if you are the beneficiary of their account, you’ll want to make decision on …

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Save for the future with a Roth IRA

Live in the moment, be carefree, right? When every day becomes a “treat yourself” day, saving for the future seems like tomorrow’s worry. Well, saving for the future is a very necessary task and the only time you can save for the future is the present. There are ways to save for the future that …

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Reviewing pandemic changes to required minimum distribution rules

At 72 years old (70 ½ if you turned 70 ½ before January 1, 2020), you are required to withdraw a minimum amount annually from your IRA or retirement plan account. This is known as a Required Minimum Distribution. If you continue working for your employer and are not a 5% owner, you can hold …

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Who pays the deceased’s taxes?

When a person dies, you might be wondering who is responsible for paying his or her taxes. Generally, the person’s estate or trust is responsible for those liabilities and pays them before making distributions to the beneficiaries. In situations where the liabilities exceed the assets (i.e. insolvent), state law governs which creditors get paid first. …

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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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Could Prop 105 save Prop 208 from being repealed?

As you have probably heard, Arizona Proposition 208 has been called and passed. There has been a lot of commentary surrounding the passing of Proposition 208, from people who approve and disapprove of the proposition. Individuals who disapprove have been looking into repealing the proposition due to the surcharge of 3.5% additional tax on the …

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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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