Do you have clients who took coronavirus-related distributions, or CRDs, in 2020? If so, they face an immediate decision about how to include the CRD in taxable income. They also must decide whether to repay the CRD and, if so, the optimal time to make repayment.
As new $1,400 stimulus checks start arriving, some people may be asking why they received less than they were expecting — or no money at all.
This third round of direct federal payments was authorized by Congress and President Joe Biden earlier this month through the $1.9 trillion American Rescue Plan.
From the SECURE Act to the CARES Act to the Tax Cuts and Jobs Act, a lot has changed in the last five years regarding retirement, income tax, and estate law changes and provisions enacted. As if retirement planning wasn’t already difficult enough for Americans to navigate, but with Congress constantly overhauling the tax system, it’s vital to be on top of the latest retirement and tax planning strategies.
Christine Benz: Hi, I'm Christine Benz for Morningstar. The SECURE Act, passed in late 2019, brought about the demise of the so-called "stretch IRA." Joining me to discuss the implications for tax and retirement planning is tax and retirement expert, Ed Slott. He is the author of a new book called The New Retirement Savings Time Bomb.
Q: Early last year I took my 2020 required minimum distribution (RMD) from my IRA, but later in the year the tax law waived RMDs, so I returned the funds. By doing this, I thought this was all taken care of, meaning that I thought I was “zeroed” out with no tax due.
But now it's tax time, and I have two issues I'd like help on.
There’s a time-bomb waiting in your IRA. Tax and IRA expert Ed Slott joins us today to share what the death of the Stretch IRA means for your retirement, and how the SECURE Act has made some big changes to the way your money is treated long after you’re gone. Whether you have a partner, children, family, or any other dependents depending on your support, the last thing you need is complicated tax rules funneling money out of your portfolio. If you’re the type of person who runs at the sound of a tax discussion, you may want to stick around for this one.