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New IRA Distribution Rule

As we rang in 2020,  the Setting Every Community Up for Retirement Enhancement Act of 2019, also known as the SECURE Act went into effect, enacting a number of major changes to IRA and 401(k) retirement plans. From an estate planning perspective, perhaps the most significant change under the SECURE Act is the mandate requiring plan […]

New Private Foundation Tax Rate

The new year has brought us the Setting Every Community Up for Retirement Enhancement Act of 2019, referred to as the SECURE Act, which contains a number of significant changes to IRA and 401(k) retirement plans.    Changes include: Repeal of maximum age at which traditional IRA contributions can be made An increase to age […]

Significant Retirement Changes under the SECURE ACT

As 2019 came to a close, the president signed into law the SECURE Act, which stands for “Setting Every Community Up for Retirement Enhancement.” The law, which took full effect on January 1, 2020 with the exception of just a handful of provisions, stands for more than just a catchy acronym—the SECURE Act could have […]

When Your Estate Includes an IRA

Several times each year, an executor will ask us, “What do I do with the IRA in the estate?”  Often the IRA is one of the most substantial assets of the estate, but the decedent may have assumed his or her estate plan was complete once they signed the will and trust documents. Many well-intentioned […]
September 18, 2019

Inherited an IRA? It’s Not Always 100% Taxable

Beneficiaries of an inherited individual retirement account (IRA) are typically not privy to the income tax filings of the decedent. The result is that some beneficiaries end up paying more tax on their inherited IRA distribution than was required. How does this happen? One answer: basis. Unlike other assets, the basis of an IRA in […]

Choosing a Retirement Plan for Your Business

Retirement is a goal of almost everyone and people frequently find themselves asking, “How can I save more money for retirement?” Statistics say 1 in 3 Americans have zero retirement savings. This is particularly concerning when experts say retirement can last far longer than most people expect and you need more money to live comfortably […]

Important Tips for Inherited IRAs

If you or someone you know inherited an IRA, it is important that you are aware of the distribution rules and the potential tax savings from the withdrawal strategy called “IRA stretching.” Stretching an inherited IRA is simply withdrawing/taking distributions over the course of the beneficiary’s remaining lifetime. When a beneficiary inherits an IRA, the […]

The IRS is Not a Party to Your Divorce, Your Agreement Does Not Bind Them

When a couple signs the dotted line of their divorce agreement, they should know that the IRS is not bound by the terms of that agreement. Evidenced in the case T.C. Memo 2017-80, the Tax Court has sided with the IRS in saying that it is not bound by the terms of a couple’s divorce […]

Early Gift for Taxpayers – PATH Act Passed

Taxpayers received an early gift last week when the Protecting Americans from Tax Hikes (PATH) Act of 2015, also commonly referred to as the “extenders tax act,” was signed into law. This legislation permanently allows IRA participants over age 70½ to make annual tax-free distributions from their IRAs for charitable purposes. Beginning immediately, a taxpayer, via […]

The Roth IRA Trap

‘Tis the season many start thinking about converting regular IRA accounts into a Roth IRA. After all, unlike the taxable withdrawals out of a regular IRA account, funds coming out of a Roth are completely tax-free after age 59½. Many individuals have made non-deductible contributions into their regular IRA accounts, thereby resulting in the IRA […]
November 25, 2014