A Few Reminders (3/22/2021)
A Few Reminders
The Tax Filing Deadline has been moved to May 17, 2021 for the filing year 2020.
Contributions for IRAs, Roth IRAs or other retirement plans need to be placed before May 17th to count for prior year contributions.
Required Minimum Distributions (RMDs) age requirements changed with the SECURE ACT in January of 2020. Any IRA account holders who turned 70 ½ on or before December 31, 2019 are still required to take RMDs. Any IRA account holders who will turn 70 ½ on or after January 1, 2020 are not required to take RMDs until the year they reach 72. They will have until April 1st the year after they turned 72 to take their first RMD.
Non-Spouse Inherited IRAs used to allow many options for distributions, but beginning January 1, 2020, any newly inherited Non-Spouse IRAs will need to be depleted within 10 years. This does not apply to Spousal Inherited IRAs. Exceptions to the 10 years will be made for children who have not reached the age of majority (until they do reach the age of majority) and a few other specific situations.
Contributions into Traditional IRA accounts after 70 ½ will now be allowed if the individual has earned income. RMDs and investment income do not count as earned income. This in effect beginning January 1, 2020.
Third Stimulus Check in the amount of $1400 are sent or in process. Eligibility is based on your Adjusted Gross Income (AGI). Qualifications are:
Individuals AGI of less than $80,000
Head of Household AGI of less than $120,000
Couple filing Jointly AGI of less than $160,000
Dependents of all ages $1400 each if guardians make under the above limits
As always, if you have any questions or need further information, please do not hesitate to contact our office.
March 22, 2021