At one time, it was possible to pass down a traditional IRA to an heir without creating added tax complexity. That’s because beneficiaries, by law, could make gradual withdrawals over their lifetime, which not only allowed those accounts to grow but limited the annual income they’d have to report.
A lot of inherited IRA owners are in for a surprise.In a switcheroo, the Treasury Department has reinstated annual required minimum distributions for most folks who’ve recently inherited Individual Retirement Accounts, according to proposed regulations released late last month that interpret the 2019 retirement law known as the SECURE Act
The November 3 version of the Build Back Better Act has resurrected retirement law changes that will curb high balance accounts and popular wealth building strategies including backdoor Roth IRAs and aftertax 401(k) contributions.There’s also a new $2.5 million retirement account reporting mandate, presumably to help the Internal Revenue Service with compliance.
How well do you understand required minimum distributions (RMDs), which the IRS describes as “the minimum amount you must withdraw from your [retirement] account each year”?RMDs can be complicated, and there are changes coming for 2022 related to how they are calculated: In short, the divisors are increasing, which means the amount required to be withdrawn is decreasing.
Taxes don’t go away when you retire.In fact, for many of you reading this post, taxes may be even more onerous in the future once you are retired
For decades there’s been a festering retirement crisis in America.
Congress has repeatedly tried to resolve the retirement crisis via stop-gap, incremental efforts.It has created new retirement accounts, like Roth IRAs to benefit lower income workers, as well as tax-advantaged health savings accounts (HSAs) to help pay healthcare costs.
IRA guru Ed Slott doesn’t trust politicians with his taxes—and doesn’t think you should, either.
A well-known retirement expert (and a recovering certified public accountant), Slott leads seminars for financial planners, advises regular folks on how to retire securely and recently updated his 2003 classic, “The New Retirement Savings Time Bomb,” to address Congress’ latest indiscretions.
Estate attorneys, certified public accountants (CPAs) and the very wealthy will likely go to war with the federal government should former Vice President Joe Biden assume the Oval Office.The issue at hand
Anybody who took a required minimum distribution from a retirement account in 2020 should take a look at new IRS guidance that says those who took a 2020 RMD can roll the money back into a retirement plan by August 31.
IRS Notice 2020-51 provides rollover relief with respect to waived RMDs, permits repayments to inherited IRAs, and includes Q&As for employers and employees navigating the 2020 RMD waivers and rollovers.
The Internal Revenue Service has been scrambling to make things easier for taxpayers in light of the COVID-19 pandemic, and now it’s issued yet another notice related to this tax season that moves deadlines later.It’s welcome relief for seniors and gig workers and many more
