There were quite of few things that were passed by Congress on December 19^th, 2019 and then signed into law by the President on December 20^th, 2019.Most changes that occurred are about how you save money for retirement, how the money in your retirement account can be used and some changes in regard to Section 529 Plans.

Here’s a run-down of the biggest changes:

1. Small-Employer Automatic Contribution Tax Credit– New tax credit for automatic contribution retirement plans.
2. IRA Contributions for Graduate and Postdoctoral Students – Graduate students and postdocs can contribute to an IRA based on their taxable support income.
3. No Age Limit on Traditional IRA Contributions– No age limit on traditional IRA contributions, you can now still fund your IRA well after 70 ½ years old.
4. No 10% Penalty to withdraw money for qualified Birth/ Adoption Withdrawals – No 10 percent penalty on qualified birth or adoption distributions.
5. RMDs have been moved from 70 ½ to 72 years of age-RMDs now delayed to age 72.
6. Opening of Retirement Plans Later – Retirement plans opened by the due date of the tax return allow deductible contributions for that tax year.
7. Expanded Tax-Free Section 529 Plan Distributions-More ways to take tax-free distributions from your Section 529 plan
8. RMDs on Inherited Retirement Accounts-New rules for taking money out of inherited retirement accounts.

This all have long legislation and many different moving parts. As your trusted tax accountant, we do our due diligence by staying up to date and making sure our clients are getting the most accurate and up to date information that is available to them. See something that makes you wonder if this impacts you? Reach out today to schedule a free consultation so we can go over this with you!

480-355-1398 or deirdre@bascexpertise.com