End of Year Action Items – 2020 Edition

endofyearaction

The past 12 months have brought significant tax changes including the CARES, Disaster, and SECURE acts, each with implications for retirement and tax planning.   In addition to providing action items to potentially help reduce your 2020 tax burden, the purpose of this post is to recap the financial planning implications of – and opportunities created by these acts.

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5 SECURE Act Changes…and How You May be Affected

5 SECURE Act Changes

In December of 2019, under the cover of darkness and impeachment hearings, some of the most significant tax legislation of the past 20 years passed in unusual bipartisan fashion: the Setting Every Community Up for Retirement Enhancement Act, or SECURE act.  The name- which undoubtedly took weeks of debate to come up with and agree upon, speaks to the purpose, though not the entirety or sweeping nature of the act; a rare legislative accomplishment for an otherwise gridlocked Washington.  While the act addresses a number of retirement chads left hanging after the Tax Cut and Jobs Act (TCJA) of 2017, it also makes changes to 529 plans, medical expense deductions, kiddie taxes and more.  The focus of the plan is clear, however, in its attempt to modernize and streamline retirement savings for Americans.

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