Tax Warrior Chronicles

RMD **Reminder** and Effective Ways to Use Them

Posted on Tue, Nov 23, 2021

By: Brandon Caine, CPA, and Robert Polans, CPA, MT

 

As we approach the 2021 tax filing season, remember it is also Required Minimum Distribution (RMD) season. You generally have until December 31, 2021, to take your RMD out of tax-deferred retirement accounts to avoid costly penalties, unless this is your first RMD year, in which case you get a grace period until April 1, 2022. You generally do not have to take RMD’s from your employer’s plan until you terminate or retire. Individuals who inherited qualified plan accounts, including either traditional or ROTH accounts, must take their first RMD by December 31 of the year following the death of the original account owner. While many take

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IRS Springs a Surprise Interpretation of the 10-Year Rule Under the SECURE Act

Posted on Thu, Apr 29, 2021

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

 

Important Update:

Shortly after this blog was published on April 29, 2021, we received “unofficial word” from several sources including the AICPA and NAIFA that the IRS intends to correct their confusing guidance in Publication 590-B on Stretch IRA’s and the SECURE Act.  We have been informed that the recent IRS Publication update did not reflect the views of IRS officials drafting new regulations or some Congressional Committee staff members who assisted in the writing of the SECURE Act.  As more information becomes available regarding this development, we will provide an update.

 

Are you someone that inherited an IRA post

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Protecting Your Heirs from Taxes and Creditors After the SECURE Act

Posted on Fri, Jan 29, 2021

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

 

The tax impact of the Setting Every Community Up for Retirement Enhancement (SECURE) Act’s 10-year limited stretch can be a “keep you up at night” concern for individuals who have amassed substantial qualified retirement accounts. Often, these individuals have a substantial portion of their investment portfolios accumulating and growing in tax-deferred retirement accounts, and as a result of the SECURE Act, could be passing down a massive income tax liability to their heirs.

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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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IRS Grants Extensive Relief to 2020 RMD Recipients

Posted on Mon, Jun 29, 2020

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.

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

Posted on Thu, Jan 02, 2020

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

 

On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (the SECURE Act) as part of the Further Consolidated Appropriations Act, 2020, effective 1/1/2020.  Not exactly a Holiday present, there are favorable and unfavorable provisions impacting your retirement planning.  In this two-part series, we will take a closer look at the highlights under the  law.

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