SETTING COMMUNITIES UP FOR THE SECURE ACT

Setting communities up for the secure act. In December of 2019, the House of Representatives and the Senate passed the Secure Act, which was subsequently sent to President Trump for signature. The final bill was signed on December 20, 2019 which is the official enactment date. The Secure Act made many changes to how you save money for retirement, how you use your money for retirement, and how you can better use your Section 529 plans. Regardless of your age these changes will impact every person. Following are some of the more significant changes you need to know about. No age limit of Traditional IRS contributions: a contribution can be made to a traditional IRS at any age, similar to the ROTH IRA. Coordination with Qualified Charitable Distribution (QDC) rules, for those taxpayers who plan to make a QDC from their traditional IRS then the distribution is reduced by: The total traditional IRA contribution deduction taken after age 70 and a half, less all prior reductions you made to your QDCs before the current tax year. Setting communities up for the secure act.

Required minimum distributions start at age 72., for those who turn age 70and a half after December 31st, 2019, the minimum age for distributions from IRS and qualified pensions is 72 years of age. For employer sponsored retirement plans, Section 401 (a)(9)(c)(i)(1) provides that for a non 5% owner the distribution is required by April 1st after the calendar year the employee turns 72 or retires from service with the employer (whichever is later). If the employee is a 5% owner, then section 401 provides that the minimum distribution is the same as for traditional IRSs, even is the employee continues to work past age 72.

Penalty relief for birth/adoption withdrawals section 72 provides that for distributions made after December 31st, 2019, penalty free withdrawals will be allowed from retirement plans for a qualified birth or adoption distribution. This is only a penalty exception-the income tax must still be paid on the distribution. Setting communities up for the secure act.

If you withdrew money improperly, from a retirement account during the Covid pandemic, as thousands did, and owe the IRS back taxes as a result, we can help. Our 36 year old Tax Resolution Company is steeped in knowledge of the IRS Revenue Code and can help you determine your Tax Relief options for your particular financial situation, including the IRS Fresh Start Program and options not in that program. Our Tax Resolution is seamless and stress free so you won’t have to deal with a IRS Wage Garnishment. Our Nationwide Tax Resolution Services will allow you to move forward in your financial life. Call today for a Free Tax Consultation. 1-888-689-7861