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 […]
