Business
Do you want to get a jump on the new retirement and tax opportunities provided by the 2019 Secure Act? In this episode, Scott explains some of the critical features of this new act and how we can use what we learn to plan our retirement and finances better. RETIREMENT PROVISIONS: Elimination of the stretch provision. Lifting the restriction on making contributions to a traditional Ira after age 70.5. Increase the time when you need to take RMDs from 70.5 to 72. Penalty-free $5000 out of IRA for Adoption or qualified birth. The use of life-income options, i.e. Annuity options in the 401(k) – BE CAREFUL. Tax credits for small businesses to set up 401(k)'s. NON-RETIREMENT PROVISIONS Repeal of the kiddie tax laws from TCJA. Adjustments to the medical tax deduction. (back to 7.5% of AGI for 2019 and 2020) Expanded provisions in 529 plans. Series of tax extenders for mortgage insurance premium deduction. Higher education tuition and fees deduction.