An excellent article regarding the ins and outs of saving for college and qualified higher education- including the College 529 CSP, Gifting implications, Coverdell Education Savings accounts (ESA’s), and the Education Tax Credits namely the American Opportunity Credit (AOTC) and Lifetime Learning Credit (LLC). Have you ever invested in a company only to see its […]
The IRS explains with Tax Tip 2025-02 that your filing status- single/ unmarried or married, is determined on 12/31 of each calendar year that applies to the entire calendar year, in addition to a few things taxpayers should do if their marital status changed. A taxpayer’s filing status generally depends on their being married or […]
Under the SECURE 2.0 Change for Higher-Income Participants, starting in 2024, participants in 401(k), 403(b) and 457(b) plans whose prior-year wage income exceeds $145,000 (adjusted annually for inflation) can only make catch-up contributions to a company-sponsored designated Roth account. However in Notice 2023-62, the IRS addresses these concerns by granting relief in the form of […]
The IRS announces with IR-2023-246 The IRS reminds taxpayers that are over 73 years of age that is born in 1951 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans. The payments are called required minimum distributions (RMDs), even if they’re still working. Account holders reaching age 73 in 2024 must […]
Protax explains that on August 25, 2023 the IRS postponed a mandate that was due to kick in starting in 2023 to 2026 for higher income tax earners making more than $145,000 that would have required their catch up contributions on 401(k)/ 403(b) and Thrift plans to be placed in after tax ROTH style IRA […]
Protax explains that if you are 50 or over that you can top off your IRA and 401(k)/ 403(b) thrift plans accordingly and how it benefits Protax’s taxpayer clients down the road. If you’re age 50 or older, you can probably make extra “catch-up” contributions to your tax-favored retirement account(s). It is worth the trouble? […]
The IRS announces with IR-2022-217 The IRS reminds taxpayers that are over 72 years of age that is born in 1950 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans. The payments are called required minimum distributions (RMDs), even if they’re still working. Account holders reaching age 72 in 2022 must […]
The IRS provides a timely and excellent reminder in Tax Tip 2022-162 about important info for people to consider before they dip into their hard-earned retirement savings for hardship distributions, early withdrawals or loans. In addition to a reminder n Required Minimum Distributions. No matter how much people plan, unexpected events occur. Often, those events […]
Just a little reminder the Backdoor ROTH is not a certainty going forward, it lives to fight another tax year! If your income exceeds the limits to contribute directly to a Roth IRA, you may have heard about the so-called ‘Backdoor Roth IRA,’ which allows traditional IRA conversions to Roth IRA regardless of income. This […]
IRS reminds us that we have until April 18, 2022 of this 2021 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2020 tax year, don’t be late! The Internal Revenue Service reminds taxpayers they may be able to claim a deduction on […]
The IRS provides an excellent breakdown on the different types of IRA’s, their uses and differences, the contributions and withdrawal features of each. Individual Retirement Arrangements, or IRAs, provide tax incentives for people to make investments that can provide financial security for their retirement. These accounts can be set up with a bank or other […]
IRS reminds us that we have until April 15, 2021 of this 2020 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2019 tax year, don’t be late! The Internal Revenue Service notes that taxpayers of all ages may be able to claim […]
IRS reminds us that we have until July 15 of this 2020 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2019 tax year, don’t be late! The Internal Revenue Service today reminded people that contributions to traditional Individual Retirement Arrangements (IRAs) made […]
The IRS reminds taxpayers what happens in the event they decide to raid their retirement plans—early withdrawals may be taxable or non taxable and subject to penalty. Taxpayers may need to take money out of their individual retirement account or retirement plan early. However, this can trigger an additional tax on top of other income […]
The IRS reminds taxpayers that, in most cases, Monday, April 1, 2019, is the date by which persons who turned age 70½ during 2018 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans. The payments are called required minimum distributions (RMDs). The Internal Revenue Service today reminded taxpayers that, in most […]
IRS explains the Individual Retirement Account (IRA) different types, their purpose, deductibility, taxability, rollovers and when you are required to withdraw funds called a Requirement Minimum Distribution or RMD. Individual Retirement Arrangements – better known simply as IRAs – are accounts into which someone can deposit money to provide financial security when they retire. A […]
In a compassionate move realizing the extent devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, the IRS has included in the definition of Hardship under IRC Sections 401(k) and 403(B) distributions to victims of hurricane Irma as followed hurricane Harvey on Aug 30, 2017 and Matthew last year. The […]
IRA and Retirement Plan Rollovers WASHINGTON — The Internal Revenue Service today provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA). In Revenue Procedure 2016-47, posted today on IRS.gov, the IRS […]
Did you contribute to an Individual Retirement Arrangement last year? Are you thinking about contributing to your IRA now? If so, you may have questions about IRAs and your taxes. Here are some IRS tax tips about saving for retirement using an IRA: Age Rules. You must be under age 70½ at the end of […]
IR-2016-48, March 28, 2016 WASHINGTON — The Internal Revenue Service today reminded taxpayers who turned 70½ during 2015 that in most cases they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Friday, April 1, 2016. The April 1 deadline applies to owners of traditional (including SEP […]
Many people find it necessary to take out money early from their IRA or retirement plan. Doing so, however, can trigger an additional tax on top of the income tax you may have to pay. Here are a few key points to know about taking an early distribution: 1. Early Withdrawals. An early withdrawal normally means
By Jillian K. Poyzer, CPA, and Timothy R. Yoder, CPA, Ph.D. January 1, 2016 Money invested in retirement accounts reaps the benefits of tax–deferred earnings and is therefore good for tax planning purposes. But putting money into retirement accounts limits the availability of funds because they are generally subject to the Sec. 72(t) 10% addition to
Did you contribute to an Individual Retirement Arrangement last year? Are you thinking about contributing to your IRA now? If so, you may have questions about IRAs and your taxes. Here are some IRS tax tips about saving for retirement using an IRA. Age rules. You must be under age 70½ at the end of the
Some people take an early withdrawal from their IRA or retirement plan. Doing so in many cases triggers an added tax on top of the income tax you may have to pay. Here are some key points you should know about taking an early distribution: Early Withdrawals. An early withdrawal normally means taking the money out
Taking money out early from your retirement plan may trigger an additional tax. Here are seven things from the IRS that you should know about early withdrawals from retirement plans 1. An early withdrawal normally means taking money from your plan before you reach age 59½. 2. If you made a withdrawal from a plan last
