Retirement savers need to pay close attention to their income tax filings this year because of pandemic-related changes to rules for required withdrawals.
Even in normal times, the rules for mandatory minimum withdrawals can be confusing, and are even more so this year because of a mash-up of tax changes and virus relief programs. If you get things right, you can avoid paying unnecessary taxes, financial advisers say.
The arrival of 2021, as welcome as it was, put a hard stop on most moves by Americans to lower their 2020 tax bills. The window for things like making charitable donations or taking capital losses to offset gains slammed shut on December 31.
But there are still a few things people can do now to cut last year’s taxes. Several involve contributions to retirement accounts, with deadlines as late as Oct. 15. Another could reduce penalties for filers behind on last year’s tax payments.
Christine Benz: Hi, I'm Christine Benz from Morningstar. We're in the thick of tax season. Joining me to discuss what should be on your radar as you ready your 2020 tax return is tax and IRA expert, Ed Slott. He's the author of a new book called The New Retirement Savings Bomb. Ed, thanks for being here.
NEW YORK, March 2, 2021 /PRNewswire/ -- Ed Slott, CPA, founder of irahelp.com, nationally recognized IRA distribution expert, professional speaker, television personality, and best-selling author announces the release of his new book, "The New Retirement Savings Time Bomb: How to Take Financial Control, Avoid Unnecessary Taxes, And Combat the Latest Threats to Your Retirement Savings," published by Penguin Books.
IRA trusts may have lost some of their luster in the wake of the SECURE Act.
Under the act, long-term tax deferral is still permitted for certain IRA beneficiaries but others must empty the inherited account within 10 years. Beneficiaries of employer-sponsored qualified plans face the same new rules.
Ed Slott’s much-hyped new book, “The New Retirement Savings Time Bomb: How to Take Financial Control, Avoid Unnecessary Taxes, And Combat the Latest Threats to Your Retirement Savings,” was released today during a live, virtual a book launch party at 6 p.m. ET.
Although the new federal law called the Secure Act provides many advantages for people with retirement accounts, there also is a provision that can hurt beneficiaries who inherit those accounts. Good news: There are several possible strategies to reduce the financial harm.