General News

SECURE Act Diminishes Stretch IRAs

Stretch IRAs Lose Potency under the SECURE Act The Setting Every Community Up for Retirement Enhancement (SECURE) Act contains a number of favorable provisions that will help Americans save more for retirement. However, the new law also contains an unfavorable provision that will affect nonspouse IRA beneficiaries who inherit accounts with substantial balances. As a…

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Personal Tax Figures for 2020

Important Personal Tax Figures for 2020 The following table provides some important federal tax information for 2020, as compared with 2019. Some of the dollar amounts are unchanged and some changed only slightly due to inflation. Social Security/ Medicare 2020 2019 Social Security Tax Wage Base $137,700 $132,900 Medicare Tax Wage Base No limit No…

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Low Tax Rates? “Cash Out” with Dividends

Low Tax Rates Provide Opportunity to “Cash Out” with Dividends Under current tax law, the federal income tax rate for C corporations is a flat 21%. Under prior law, C corporations faced a graduated federal income tax-rate schedule with a maximum effective rate of 35%. The flat 21% corporate tax rate is permanent, unless Congress…

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Kiddie Tax Rules Rolled Back

Pre-TCJA Kiddie Tax Rules Are Reinstated The so-called “kiddie tax” rules were designed to prevent wealthy families from shifting unearned income (typically from investments) to younger generations to lower a family’s overall tax bill. These rules can potentially apply until the year an affected young adult reaches age 24. Before the Tax Cuts and Jobs…

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SECURE Act Affects Retirement and Tax Planning for Individuals

SECURE Act Affects Retirement and Tax Planning for Individuals On December 20, President Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act. It was part of the Further Consolidated Appropriations Act federal spending package. In general, the SECURE Act is intended to expand opportunities for individuals to increase their retirement…

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