Secure 2.0 add new penalty exception for retirement withdrawals

SECURE 2.0 adds a new exception for taking penalty-free withdrawals from retirement accounts. The tax code imposes a 10% penalty on the taxable amount of withdrawals from accounts such as 401(k) plans and IRAs received before age 59½. There are several exceptions to the penalty. The new law adds an exception for distributions used for […]

Secure 2.0 makes changes to ABLE accounts

The new SECURE 2.0 law makes a favorable change to Achieving a Better Life Experience (ABLE) accounts, although it doesn’t kick in for a few years. Tax-exempt ABLE programs are established by states to help individuals with disabilities. Before the new law, in order to be the beneficiary of an ABLE account, an individual’s disability […]

IRS issues 2023 Mileage Rates

The IRS has issued the 2023 optional cents-per-mile rates used to calculate the tax deductible costs of operating a vehicle. Effective Jan. 1, 2023, the standard mileage rate for the business use of a car (including vans, pickups, and panel trucks) is 65.5 cents per mile. (This is up from 58.5 cents per mile for […]

Key tax and retirement provisions in the Secure 2.0 Act

Key tax and retirement provisions in the Secure 2.0 Act – Journal of Accountancy https://bit.ly/3GEWGWA

Secure 2.0 increases Small Business credit for retirement plan

SECURE 2.0 builds on the provisions of the original SECURE Act by addressing a wide array of areas that make major changes to retirement planning. To incentivize small businesses to establish retirement plans, the new law creates or enhances some tax credits. For example, it increases the startup credit from 50% to 100% of administrative […]

Syndicated conservation easements impacted by Consolidated Appropriations Act

A new law affecting conservation easements was included in the Consolidated Appropriations Act. Dubbed the Conservation Easement Program Integrity Act, it aims to address taxpayers who have twisted the tax law to develop abusive “syndicated” conservation easements. They use inflated appraisals and partnership arrangements to reap “grossly inflated” deductions. Previously, taxpayers could claim charitable deductions […]

Secure Act changes charitable gift from retirement plan and IRAs

Making qualified charitable distributions (QCDs) is one way for older taxpayers to satisfy their IRA or other qualified plan’s required minimum distributions (RMDs). This is an especially attractive option if you’re philanthropically minded. With a QCD, you can distribute up to $100,000 per year directly to a 501(c)(3) charity after turning age 70½. While you […]

Secure Act changes contributions to retirement plans

The SECURE 2.0 Act, which Congress recently passed, contains a provision that will allow larger “catch-up” contributions to certain retirement plans. Defined contribution retirement plans are permitted, but not required, to allow participants age 50 or older to make additional catch-up contributions. For 2023, the 401(k) plan catch-up contribution amount is $7,500 and the SIMPLE […]

Happy New Year

“I don’t know where I’m going from here, but I promise it won’t be boring.” —David Bowie Wishing you a happy, and exciting New Year. Happy New Year!!!🎆

Secure Act 2.0 increases RMD age

Among the many provisions in the SECURE 2.0 Act, which was recently passed by Congress, is an increase in the age to begin taking required minimum distributions (RMDs). Employer-sponsored qualified retirement plans, traditional IRAs and individual retirement annuities are subject to RMD rules. They require that benefits be distributed or begin being distributed by the […]