You may have heard that the amount you can put in a 401(k) has been increased for 2023. But many of the headlines bury the big news: Roth IRA rules have changed as well. Clark shares the details you need to know. MORE CLARK.COM CONTENT YOU MAY LIKE: ► clark.com/save-money/best-time-to-buy-series-i-savings-bonds/ ► clark.com/save-money/i-bonds/ ► clark.com/personal-finance-credit/investing-retirement/how-to-open-a-roth-ira/ Clark.com: Advice You Can Trust: SUBSCRIBE ► NEWSLETTER ► Follow Us for More Money Tips: Website ► Podcast ► Twitter ► Clark Howard Instagram ► Clark Howard Facebook ► Clark Deals Facebook ► Clark Deals Instagram ► For the very best deals and money-saving shopping tips ► www.clarkdeals.com Need Consumer Advice? Need advice? The Consumer Action Center is a free community resource for advice on money and consumer issues. Call 636-49C-LARK (636-492-5275) and a member of Team Clark will assist you as soon as possible. The Consumer Action Center is available Monday-Friday from 10 a.m. to 4 p.m. ET. If you found this video valuable, give it a like. If you know someone who needs to see it, share it. Leave a comment below with your thoughts. Add it to a playlist if you want to watch it later. Our Promise to You: At Clark.com and ClarkDeals.com, we do not get paid for endorsements or reviews of any product or service, nor do we allow advertisers to place paid content on our sites. ► ...(read more)
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As the tax season approaches, it's important to know the updated rules regarding individual retirement accounts (IRA). Many changes took place in 2019 and 2020, and it's crucial for everyone to understand the changes to make the most of their retirement savings. Here are some of the new IRA rules you may have missed. New Age Limit for Traditional IRA Contributions Previously, account holders could contribute to a traditional IRA until they reach age 70 1/2. However, as of the beginning of 2020, there is no age limit for traditional IRA contributions. This means that account holders who meet certain criteria can continue to contribute to their traditional IRA indefinitely. New RMD Age The required minimum distribution (RMD) age was changed from 70 1/2 to 72, effective from January 1, 2020. If you turn 70 1/2 in 2019, you will still need to take your RMD for 2019 by April 1, 2020. However, if you turn 70 1/2 in 2020 or later, you can wait until you reach age 72 to take your first RMD. Penalty-Free Withdrawals for Birth or Adoption In December 2019, the SECURE Act was passed, which allowed higher education expenses and birth or adoption expenses to be considered penalty-free withdrawals from an IRA. Individuals can withdraw up to $5,000 from their IRA without paying the 10% early withdrawal penalty. It's also important to note that these withdrawals are still subject to income tax. Elimination of Stretch IRA for Non-Spouse Beneficiaries Previously, non-spouse beneficiaries of an IRA could stretch their distributions over their lifetime, allowing for extended tax-deferred growth. However, the SECURE Act eliminated the stretch IRA provision for non-spouse beneficiaries. Now, most non-spouse beneficiaries must withdraw the entire IRA balance within 10 years of the account owner's death. Qualified Charitable Distributions Individuals aged 70 1/2 or older may still make qualified charitable distributions (QCD) up to $100,000 from their traditional IRA or Roth IRA. These QCDs can count towards your RMD and reduce your taxable income for the year. New Deadline for Reversing RMDs If you took an RMD in 2020 and no longer want or need it, you have until August 31, 2020, to return the distribution to the IRA as a rollover contribution. This rule only applies to RMDs taken in 2020, not previous years. In conclusion, staying informed about new IRA rules and regulations is crucial for maximizing your retirement savings. The changes to age limits and new withdrawal options can have a significant impact on planning for your future. Make sure to consult with a financial advisor to determine the best course of action for your specific situation. https://inflationprotection.org/rules-of-the-new-ira-you-might-have-overlooked/?feed_id=99114&_unique_id=6467751fd5dc9 #Inflation #Retirement #GoldIRA #Wealth #Investing #clark #clarkhoward #Consumer #consumeradvocate #Finances #financialliteracy #financialpodcast #money #moneypodcast #Podcast #InheritedIRA #clark #clarkhoward #Consumer #consumeradvocate #Finances #financialliteracy #financialpodcast #money #moneypodcast #Podcast
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