Login

Recent Tax Updates

SUBSCRIBE TO CROSSLINK UPDATES

SECURE Act Retirement Account Changes

Included in the 2020 Appropriations legislation passed last December was the SECURE Act. Included in the SECURE Act were changes that will affect individual retirement accounts (IRA) beginning in 2020.

Here are some of the key changes:

  • Age restriction on traditional IRA contributions has been eliminatedFor tax years beginning in 2020 an individual may make contributions to a traditional IRA after reaching age 70 ½ .
  • Required Minimum Distribution Age has been increased to 72For individuals who reach 70 ½ after 2019 they will not have to begin taking a required distribution until they become 72.If an individual turned 70 ½ before 2020 they still would have to begin taking a required distribution when they reached 70 ½.
  • Additional penalty exemption for some distributions prior to age 59 ½Starting in 2020 distributions prior to age 59 ½ of up to $5,000 from a retirement plan that are used to pay expenses for child birth or adoption will not be subject to the 10% early distribution penalty.
  • Allows contributions to traditional IRA for 70 ½ and beyondProvided an individual has earned income they can make a contribution to a traditional IRA after they reach 70 ½.

For more information see the following on the IRS website:

Mark Castro, CPA

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.
Facebook
Twitter
LinkedIn
Email
Print

Recent Tax Updates

Form 8962 premium tax credit health insurance

Form 8962 Reminders for Tax Season 2023

Tax preparers must remember that if a taxpayer received an advance premium tax credit (subsidy) to help pay for their health insurance that they obtained through an Exchange, they must complete (including the reconciliation of the advance premium tax credit) and include the Form 8962 (Premium Tax Credit) with their federal return.

Read More »
Premium Tax Credit

Premium Tax Credit

What is the Premium Tax Credit? The Premium Tax Credit is a refundable tax credit for certain people who enroll, or whose family member enrolls,

Read More »

Form 8615

Form 8615 is required to be used when a taxpayer’s child had unearned income over $2,200 and is

Read More »
Why is my tax refund so low?

Why is My Tax Refund So Low

Many taxpayers may be surprised that the amount of their 2022 tax return is lower this filing season, leaving them to wonder, “Why is my tax refund so low?”

Read More »
Form 1099-K

Understanding Form 1099-K

Form 1099-K is an IRS information return used to report payment card and third-party network transactions on a federal tax return for businesses, sole proprietors, individuals, and gig economy workers.

Read More »
Get the FREE
Are you prepared for tax season? From software and banking setup to training and marketing tasks, make sure your tax business is ready by downloading your February Readiness Checklist today! 
 
PLUS get our “What to Bring to Your Appointment” checklist for your customers!