THE 2017 TAX ACTS IMPLICATIONS IN 2020

♠ Posted by Marc J. Soss in 2017 Federal Income Tax plan,2017 TAX CUTS AND JOBS ACT,charitable contributions,federal income tax,itemized deduction,tax planning

The 2017 Tax Act made significant changes to itemized deduction planning. The two (2) biggest changes for 2020 involved: 1. Much higher standard deduction (adjusted for inflation annually).For 2020: $24,800 for married couples filing jointly (plus $1,300 for each spouse attaining age 65: max $27,400)), $12,400 for unmarried individuals/married filing separately (plus $1,650 if attaining age 65 ($1,300 if married filing separately: max $14,050 if single (max $13,700 if married filing separately)), and $18,650 for head of household (plus $1,650 if attaining age 65: max $20,300). 2. The Itemized...

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POTENTIAL CHANGES FOR NONSPOUSE DESIGNATED IRA AND RETIREMENT PLAN BENEFICIARIES ON THE HORIZON

♠ Posted by Marc J. Soss in estate planning,federal estate taxes,IRA beneficiary,retirement plan,retirement plan planning,SECURE ACT 2019,stretch IRA,Wealth Transfer

Important legislation is working its way through Congress. The Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”) as passed by the House of Representatives on May 23, 2019, and would impact how and when an IRA or retirement account beneficiary would be forced to receive distributions from an inherited account. The biggest change under the SECURE Act would be the replacement of the 5-year distribution rule for inherited IRAs with a 10-year rule. It would also eliminate “stretch IRAs.” If signed into law, the Act would impact plan participants and IRA owners who die after...

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