If you received a Required Minimum Distribution (RMD) in 2020, you should take careful note of guidance contained in the recently issued IRS Notice 2020-51 regarding the CARES Act’s waiver of 2020 RMDs and a taxpayer’s ability to rollover such distributions.Read More
Tax Warrior Chronicles
By: Sherri Sorbello, CPA
Most distributions from 401(k) plans and IRAs are subject to a 10% early withdrawal penalty if they are taken before you reach age 59 ½. However, like most tax rules, there are certain exceptions allowing you to withdraw funds without a penalty. This blog will address the most common exceptions to the 10% additional tax on early withdrawals.Read More
Confusion abounds as recent changes in the tax laws begin to take root. It’s like the perfect tax storm mixing changes enacted years ago, which didn’t take effect until this year, with the Taxpayer Relief Act of 2012. One of these changes from a few years ago deals with in-plan Roth conversions and how the taxable income is reported.