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Inherited an IRA from a parent? The distribution rules have been anything but straightforward lately. Back in 2020, new beneficiaries were hit with a 10-year rule, requiring them to take the entire sum within a decade. Confusing, right? But hold on, the IRS had other plans. Early this year, they proposed changes that could force some beneficiaries to take Required Minimum Distributions (RMDs) and empty the account in 10 years. However, there's good news for you: last week, the IRS waived penalties on missed distributions for 2023 and indicated that final guidance won't come until 2024. While this might seem like a temporary reprieve, it's a crucial time to consider planning strategies around inherited IRA distributions. The recent Notice 2022-54 clarified some aspects, but it's still a complex matter. Let's recap the changes briefly: 📅 Before 2020: 'Stretch IRA' allowed withdrawals over your life expectancy. 📅 January 2020: Secure Act introduced the 10-year rule for non-eligible designated beneficiaries. 📅 February 2022: IRS proposed changes that could affect beneficiaries taking distributions over 10 years. 📅 October 2022: IRS waives penalties for those affected by the new rules who missed RMDs. 📅 July 2023: IRS extends penalty waiver for 2023, final guidance expected in 2024. Remember, planning strategies are essential to manage tax implications. Consider working with one of our financial advisors to assess your situation. #ira #inheritancetaxplanning #financialadvisor

Have you inherited an IRA in the past few years? Last week, the IRS issued Notice 2024-35, providing relief for owners of Inherited IRA accounts. Since 2020, many beneficiaries who inherited IRAs have been subject to a 10-year rule, meaning they must draw the funds out of the IRA (creating tax revenue for Uncle Sam) by the 10th year after the decedent's passing. Further, the IRS specifies annual draws are required along the way if the decedent had already been subject to Required Minimum Distributions (RMDs). In a nod to the confusion these provisions have created, the IRS notice excuses required minimum distributions in 2024 for IRA beneficiaries who are subject to the annual RMDs within the 10-year period. This builds on previous IRS relief for 2021, 2022 and 2023 RMDs that have also been excused. (Note: certain classes of Eligible Designated Beneficiaries do not qualify for this relief)

Learn ways to increase your Roth IRA or 401(k) contributions before 2025's tax changes. Creative Capital Wealth Management Group

11 Exceptions to the 10% penalty tax on early IRA withdrawals: If you're facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you've reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here's what you need to know about the tax implications, including when the 10% early withdrawal penalty tax might apply. Penalty may be avoided In almost all cases, all... https://bit.ly/47RhAg5

11 Exceptions to the 10% penalty tax on early IRA withdrawals: If you're facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you've reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here's what you need to know about the tax implications, including when the 10% early withdrawal penalty tax might apply. Penalty may be avoided In almost all cases, all... https://bit.ly/47RhAg5

What will you do with your income tax refund? It’s that time of year when people are starting to get their tax refund back. It’s decision time…what will your do with your tax refund? Is it purchasing something that could be a want or a need? Is it something you’re taking on debt to make it happen? Or would it be more prudent to contribute to your investment that has a higher rate of return or contributing to protecting your income?  Some ideas are: ·      Contribute to your savings plan ie. Tax Free Savings Account/ - TFSA Retirement savings - RRSP/ Registered Education Savings -RESP ·      Invest in yourself and/or business – upgrading your education and skills ·      Pay down consumer debt – especially high interest rate credit cards ·      Build an emergency fund for those rainy days. Recommendation is 3-6 months of income. Helps with security and peace of mind for those unexpected expenses. ·      Invest in health and wellness – for physical and mental health ·      Open a First Home Savings Account for your first home ·      Home improvement – fixing something that you may’ve been putting off? ·      Investing in a living benefit policy such as Critical Illness or Disability Insurance – protecting your income If you'd like to share, I would like to hear how you will be using your refund. (more research and ideas for me :) #finance #taxrefund #savings #decisiontime #netwebcomparty

Self-employment can offer a lot of financial freedom, but it comes with unique challenges when it comes to taxes.  That's why it's important for self-employed individuals to be aware of the tax tips that can help keep more money in their pockets. Some of these tips include setting up a retirement savings plan, keeping track of business expenses, and utilizing deductions for home office expenses.  By following these tips, self-employed clients can make sure they're not overpaying on taxes and can maximize their earnings. #taxtips #selfemployed #taxdeductions  

“I’m on pension. How am I going to pay for that?” 💰 I recently came across this article and immediately thought, was Liz not informed of the capital gains before gifting this land? Article is a bit vague but the key takeaway here is make sure you are consulting with your Wealth Advisor when proceeding on transactions such as this. And if you don’t have an advisor… get one! This article also touches on the capital gains tax increase. Sure, you may think you won’t be impacted by the increase personally over 250K, but it’s not difficult to get above that bracket when dealing with an estate so if you are retired and thinking about touching up your Will, make sure you are talking with your advisor about how it impacts you. #wealthadvisor #wealthplanning #financialplanning #wealthtransfer #estateplanning

My Top 3 Tax Strategies to build wealth at any income level: . . . 1️⃣ Sell your principal residence every 2 years tax-free. Roll that money into a nicer home (not required, but smart to do). Or it really low interest rate times (it’ll happen again), roll some into a new home and some into an investment property. 2️⃣ HSA. If you have a high deductible health insurance plan, you should always fully fund your HSA. This is triple fold tax savings. First, the contributions are deductible. Second, you’re spending the funds on medical, which is making them pretax. And last, if you don’t use the funds, they roll over and become an IRA during retirement. 3️⃣ Roth IRA contribution or a Backdoor Roth. And the younger you are the better this strategy is for you… all of the growth overtime will be tax-free. Shoot me a message if you want more tax savings tips!

The Internal Revenue Service (IRS) has recently modified and clarified Roth IRA rules, offering taxpayers the opportunity to benefit from certain tax-saving measures. The new rules allow individuals to make contributions beyond the annual limit of $6,000 ($7,000 for those aged 50 or over), as long as they meet certain conditions. Read on to find out what the conditions are:  #rothIRAplancatchup #retirementplanning