Tax Warrior Chronicles

Updated IRS Life Expectancy Tables Mean Smaller RMDs in 2022

Posted on Thu, Dec 03, 2020

By: Elizabeth Witko, MAcc, MSF, and Robert N. Polans, CPA, MT, PFS

 

On November 6, 2020, the IRS issued final regulations containing new life expectancy tables to be used for determining Required Minimum Distributions (“RMDs”). These new tables are effective for RMDs beginning on January 1, 2022. The old tables will still apply for 2021 and no RMDs were required for 2020 due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. After reviewing improvements in mortality since RMD life expectancy tables were last updated in 2002, the IRS provided for an overall moderate reduction of RMDs utilizing these newly updated tables.

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CARES Act Creates Special Rules for Retirement Funds in 2020

Posted on Mon, Mar 30, 2020

The recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act) created temporary provisions affecting two types of taxpayers: those who wish to preserve depressed retirement assets, and those who need emergency liquidity from their retirement assets.

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GUEST BLOG - Are Most of Your Retirement Eggs in the Same Tax Basket?

Posted on Wed, Feb 12, 2020

By: Jeremy Gussick, MBA, CFP

 

As the busy tax season gets into swing, we like to tap friends in the financial planning world to help our clients and subscribers with their planning. Jeremy Gussick of LPL Financial is no stranger to our subscribers.  Today, he talks about taking distributions from various types of retirement accounts in the most tax-efficient manner.

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The SECURE Act - Significant Changes for IRAs and 401(k)s – Part II

Posted on Fri, Jan 03, 2020

By: Beth Gaasbeck, CPA, MBA and Robert N. Polans, CPA, MT, PFS

 

Welcome to Part II of our two-part blog discussing the SECURE Act and its impact on retirement and estate planning.  The Act was signed by the President on December 20, 2019, and is effective as of January 1, 2020. Today’s focus is on the not-so-good parts of the Act.

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Advantages of Naming Spouse as Sole Beneficiary of IRAs

Posted on Tue, Nov 04, 2014

All named beneficiaries of a decedent's IRA can receive a distribution from the decedent's IRAs. However, a surviving spouse who is the designated sole beneficiary of the decedent's IRA has two unique options that are not available to other beneficiaries. The surviving spouse may: (1) roll over the decedent's IRA into an IRA established in the spouse's own name ("spousal rollover"), or (2) elect to treat the decedent's IRA as the surviving spouse's own IRA ("election").  The surviving spouse is treated as if she had funded the IRA with either of these options.

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April 1st is Critical for Tax-paying Seniors with IRAs & QRPs

Posted on Tue, Mar 26, 2013

 

A critical date is approaching for those who attained age 70.5 during 2012. If that is you, then by April 1, 2013, you must commence making required minimum distributions (“RMD”) from your traditional IRAs. If you are/were a participant in a qualified retirement plan ("QRP," e.g., 401(k) plan) you must begin taking distributions by April 1st of the calendar year following the later of the year in which you reach age 70.5, or retire; except for 5% owners, who have the same rules as IRA owners.  A qualified plan, however, may provide a specific required beginning date (“RBD”), so be sure to check with your former or current employer, if applicable.

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