To understand this change, I’ll give a little background. When a person dies, their income tax year ends on the day of their death, and a new taxpayer called an “estate” comes into being. For federal income tax purposes, the estate files a Form 1041. On Form 1041, the estate has to report any income … Read more
The 880-page Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by the President on March 27, 2020, includes a number of measures designed to stimulate the economy. One provision allows retirees to forgo taking Required Minimum Distributions (RMDs) from IRAs or 401(k)-type plans for calendar year 2020. This isn’t the first time that they … Read more
It has been awhile since made a post, but this development deserves your immediate attention. As you may be aware, the Setting Every Community Up for Retirement Enhancement Act of 2019 commonly being called the SECURE Act was signed into law December 20, 2019 and the changes discussed in this email apply to those who … Read more
In another column on required IRA withdrawals, I looked at the tax rules that require the elderly to start drawing on the moneys in their individual retirement accounts (IRAs). Under those rules, there are stiff penalties if you fail to make withdrawals from your IRAs after you reach age 70.5. In this article, we’ll take … Read more
THIS ARTICLE DISCUSSES THE RULES ISSUED BY THE INTERNAL REVENUE SERVICE ON APRIL 16, 2002. AS OF JANUARY 2020, THESE RULES STILL REMAIN VALID. HOWEVER, AS A RESULT OF THE SECURE ACT SIGNED IN DECEMBER 2019, THE AGE WHEN YOU MUST START YOUR RMDS, HAS BEEN INCREASED FROM AGE 70.5 TO AGE 72. Everyone has … Read more