The updates include:
Translations from Your Trusted Advisor.
Yesterday, the Social Security Administration issued a press release with updates for 2022 including updating their fact sheet.
The updates include:
On Monday, the IRS released Notice 2020-79 which provides cost of living adjustments for retirement plans for 2021.
401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have remained the same as 2020 at $19,500. The annual catch-up limitation for employees over age also remains unchanged from 2020, at $6,500.
Mallory Vincent, MBA •
The CARES Act allows any taxpayer required to take required minimum distributions (RMDs) from IRAs, 401(k)s, 403(b)s, and certain other plans in 2020 to skip those RMDs in 2020. This includes anyone who turned 70 ½ in 2019 and would have had to take their first RMD by April 1, 2020.
Lena Rozzi, CPA •
Congratulations to the Class of 2020! Graduating from school can mark an exciting time for new graduates as they transition from being a student to becoming a working professional. This three part series will dive into some helpful information and tips on what to expect as you journey down your career path.
By the time a lot of taxpayers get around to thinking about taxes, it could be too late to be proactive, and all you can do is close your eyes and write that check! By taking a look at your financial situation now, you may be able to take advantage of some tax saving strategies before the end of year to improve your tax outcome.
Wednesday, the IRS released Notice 2019-59 which provides cost of living adjustments for retirement plans for 2020.
401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have increased $500 to $19,500. The annual catch-up limitation for employees over age also increases $500, to $6,500.
Andrew Luce, CPA •
One of the most commonly used tax savings strategies is done when an individual or employer makes a contribution to a retirement plan. Luckily, as an individual or employer, you still have time to make a retirement plan contribution after December 31st to an employer 401(k), solo 401(k), Self-Employed Pension (SEP), or Individual Retirement Account (IRA) and deduct the contribution on your income tax return. For example, a contribution paid into your retirement plan in 2019 might be deductible on your 2018 income tax return. The following information summarizes some key facts about these retirement plans, including timing and deductibility of retirement plan contributions, among other things:
Last week the IRS released Notice 2018-83 which provides cost of living adjustments for retirement plans for 2019.
Dana Bull, CPA •
Age 62. The magic age at which you become eligible to start receiving social security benefits. But should you? There are many complexities when it comes to Social Security and understanding the rules for collecting Social Security can help you take advantage of the retirement benefits to which you are entitled. I will outline some of the considerations for when to begin receiving Social Security benefits.
Nora Tellifson, CPA •
Roth IRAs are very popular for many reasons: qualified withdrawals from Roth IRAs are not taxed, there are no required minimum distributions from Roth’s once you reach age 70 ½, and there is no age limit for making a Roth contribution. The problem that many taxpayers run into is that there is an adjusted gross income limit for making Roth contributions that phases out beginning at $186,000 for married couples and $118,000 for singles in 2017. This income limitation makes Roth IRA contributions off limits for many taxpayers. In a Roth conversion, traditional IRA contributions are converted to a Roth IRA, and there is no income limitation for a conversion. Here are a few of my favorite scenarios for a Roth conversion.
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