Required Minimum Distribution rules
When making minimum distributions from a retirement account, the required minimum distribution is a term that refers to the lowest amount of money that you must withdraw from said account every year once you reach the age limit. You can withdraw more than the minimum if you would like to, but keep in mind that […]
Retirees who turned 72 in 2022 must take RMD by April 1
Most retirees who turned 72 in 2022 must take the first required minimum distribution (RMD) from their retirement account by April 1, 2023, according to the IRS. The minimum distribution requirement applies to Individual Retirement Arrangements (IRAs), 401(k)s, and similar workplace retirement plans. Taxpayers who have Roth IRAs don’t need to take RMDs from those accounts. […]
Making a qualified charitable distribution is a good way to end the year
Year-end is just around the corner, but there is still time to make some tax-saving moves before 2022 comes to a close. Taxpayers who are age 70 ½ or older can transfer up to $100,000 tax-free to a charity via a qualified charitable distribution (QCD) by the end of the tax year. Making qualified charitable […]
Is now the time to make the switch to a Roth IRA?
Present and future income tax rates should be considered when deciding to convert your traditional IRA to a Roth IRA.
There’s still time to make IRA contributions for 2021
It’s not too late to make contributions to your traditional or Roth IRA for the 2021 tax year. Contributions made up until April 18, 2022, may be deducted from your 2021 tax return. Any contributions to a traditional or Roth IRA made until the April 18 filing date must be designated for 2021 to the […]
Don’t forget to take required minimum distributions this year
If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last March, allowed people to skip taking these withdrawals in 2020 but now that we’re in 2021, […]
2021 Q1 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January […]
Looking to the future: Biden’s proposed tax plan
Between a more urgent need for Covid relief, economic stimulus and a narrowly divided Congress, Joe Biden’s proposed tax plan may not get much traction in the early days of his administration. It is important, however, to take a look at the president-elect’s priorities that may inform more targeted legislative actions. Below is a snapshot […]
What qualifies as a ‘coronavirus-related distribution’ from a retirement plan?
The Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. The first question that needs to be asked is, what is a coronavirus-related distribution? Early distribution basics In general, if you withdraw money from an IRA or eligible retirement plan before […]
A nonworking spouse can still have an IRA
It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” […]