February Tax Deadlines & SECURE ACT 2.0
Tax Season has BEGUN!
The first day of tax filing season was on January 23rd 2023!
I would recommend reaching out to your Tax Advisor or Accountant now...before they get very busy.
Since February there are NO February deadlines...
...lets go over the highlights of the new SECURE ACT 2.0.
There are some really nice improvements to Retirement Plan Rules!
5 COOL NEW RULES:
Required liquidation of your IRAs & 401Ks was moved from age 72 to now 75 (if born after 1960).
SEP IRAs that have been historically pre-tax (get a tax deduction) are now allowed to be post-tax (ROTH!!)
this is a bigger deal than it seems bc SEP IRAs are easier and cheaper than 401Ks and it will help a lot of young business owners
Profit Sharing Plans can now be ROTH!!
notice the theme...Congress wants you to pay taxes NOW (and for many that is a great idea)
529 Plans can be moved to ROTH IRAs
Complex process here, not as sweet as it sounds bc of rules & limits...basically need to wait 15 years to do this.
More ways to access retirement funds early
Similar to some of the covid provisions, but you can now access money for such things as:
for living in a Federal Disaster area
Distribution from Retirement Plan of up to $22,000...also a...
Loan from Retirement Plan for up to $100,000
Terminal Illness (expected to live than 7 years)
Victim of Domestic Abuse (defined broadly to allow many to qualify)
Financial Hardship Emergency (only $1,000 and a bunch of other rules)
There are a lot more things in that new SECURE ACT 2.0, but I wanted to give you the highlights.
To learn more...this is another good reason to meet with your Tax Advisor / Accountant early...
...see which of these new rules will be most impactful for your tax situation.
Don't have a Tax Advisor and looking for Tax Saving Strategies?
Best
Pat
Disclaimer: This is meant to be educational only. This is NOT advice for your specific situation. Please consult a qualified tax professional before making any changes to your financial or tax situation.