The federal government made some tax law changes at the end of 2019. There were a lot of changes in IRA's, 401Ks and other provisions. In this video we will discuss three things that changed in IRA rules. The first change is that they eliminated the stretch option on inherited IRA's and replaced it with a 10 year rule. For RMD effective 2020, the age was raised to 72 and lastly, no contribution limit on the traditional IRA. Other tax law changes involve birth or adoption distribution, non tuition fellowship, compensation for IRA purposes, and non deductible IRA contribution can be made with certain foster care payments. #2019taxlawchanges #taxlaw #IRA Trusted Advice. Personally Delivered....(read more)
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The year 2019 has brought a bunch of changes to the tax laws that affect Individual Retirement Arrangements or simply IRAs. These changes have significant implications for those who are planning their retirement. Some of the changes include the removal of the age limit for traditional IRA contributions, modification of the required minimum distribution rules (RMDs), and authorization of penalty-free withdrawals for specific life events. One of the essential changes in the 2019 tax laws is the removal of the age limit for traditional IRA contributions. Previously, individuals could only contribute to their traditional IRAs up to age 70 ½. However, this age limit has been removed, meaning that individuals can now contribute to their traditional IRAs at any age, provided that they have earned income. Another significant change is the modification of RMD rules. Previously, taxpayers were required to begin taking RMDs from their traditional IRAs at age 70 ½, failure to which they would be subject to penalties. However, the new law has increased the age at which taxpayers are required to start taking RMDs from 70 ½ to 72. This modification gives taxpayers more time to let the funds in their accounts grow tax-free, giving them more substantial benefits at retirement. The 2019 tax law changes also authorize penalty-free withdrawals for specific life events. Under the new law, taxpayers can withdraw up to $5,000 from their retirement accounts within a year of the birth or adoption of a child without any penalty. The new rule also extends to the withdrawals necessary to cover expenses relating to foster care, as well as those incurred due to the death or disability of a beneficiary. Additionally, non-spouse beneficiaries of IRAs now only have ten years to withdraw all the funds in inherited IRAs completely. Prior to the new rule, non-spouse beneficiaries could take required minimum distributions over their entire life expectancy. Consequently, this change has significant estate planning implications for individuals with significant retirement plan balances, as it may result in a substantial amount of funds being forced out of retirement accounts over a shorter period. In conclusion, the tax laws changes of 2019 have various effects on the IRA rules, which should be considered by anyone who is planning their retirement. The removal of age limits on traditional IRA contributions, modifications to RMD rules, and authorization of penalty-free withdrawals for specific life events, are some of the essential changes worth noting. Understanding how these changes impact your retirement planning is an essential part of making the most of your retirement savings. https://inflationprotection.org/retirement-planning-an-overview-of-the-2019-changes-to-ira-rules-in-tax-laws/?feed_id=88173&_unique_id=643b379abaa91 #Inflation #Retirement #GoldIRA #Wealth #Investing #2019taxlawchanges #federalgovernment #financial #financialadvisor #individualretirementaccount #inheritedira #ira #IRAchanges #IRAchangesexplained #IRARules #IRS #requiredminimumdistributions #Retirement #retirementplanning #RMD #stretchoptionininheritedIRA #tax #taxchanges #taxlawchanges #taxes #InheritedIRA #2019taxlawchanges #federalgovernment #financial #financialadvisor #individualretirementaccount #inheritedira #ira #IRAchanges #IRAchangesexplained #IRARules #IRS #requiredminimumdistributions #Retirement #retirementplanning #RMD #stretchoptionininheritedIRA #tax #taxchanges #taxlawchanges #taxes
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