NEW YORK, April 1, 2020 -- The 2020 edition of Ed Slott's Retirement Decisions Guide,a book by Ed Slott, CPA, America's IRA Expert, founder of Ed Slott and Company, LLC and creator of irahelp.com, has been revised to incorporate information about the new retirement tax laws implemented following the passage
The ink is barely dry on the new coronavirus relief bill, yet tax mavericks are hatching strategies around the retirement savings provisions.
Last Friday, President Donald Trump signed the $2 trillion package into law. The measure contained several provisions aimed at loosening rules governing retirement accounts.
The coronavirus has disrupted life throughout America, but various common-sense tips can help keep your finances under control.
Fortunately, most of the following checklist items are reasonably easy to implement, without requiring much heavy lifting. Many are actions you should have been taking anyway, but now they're more urgent.
In addition to the catastrophic health situation caused by coronavirus, many of your clients are also getting hurt financially, especially in their retirement accounts. You may be able to help them take advantage of several new relief provisions that most of your clients can benefit from immediately.
The coronavirus stimulus package, known as the CARES Act, working its way through Congress is expected to waive required minimum distributions (RMDs) from retirement savings accounts for 2020, granting a reprieve for retirees age 70½ and older who might otherwise be required to sell low and take distributions just when the stock market has nosedived in recent weeks.
The market’s recent plunge has been brutal.
But for people with traditional individual retirement accounts, the silver lining is that today’s lower account balances can be used to reduce income-tax bills in retirement.
The key is a strategy known as the Roth conversion. This allows account owners to transfer some or all of the money in a tax-deferred IRA to a Roth IRA, a retirement account into which you contribute after-tax dollars and get tax-free withdrawals.
The Senate’s $2 trillion coronavirus-relief bill that passed Wednesday night includes breaks for Americans whose retirement accounts have been battered by the stock-market meltdown.
The House of Representatives is expected to pass the package on Friday. Treasury Secretary Steven Mnuchin said President Trump would sign the package as it was written Wednesday.