If You Need Help with Any of the Following Issues, Please Feel to Contact Us.
For our clients who are worth more than $3.0, now is the time to think about estate planning to protect your estate from the possible reduction of the current $11.0+/- exemption. Use or lose it!
IRS Delays Filing and Payment of Gift & GST Taxes. Please Click Here—->for IRS Notice 2020-20
IRS Delays Filing and Payment of Income Taxes. Please click–>IRS Notice 2020-18
“What you need to know about unemployment benefits in the coronavirus relief bill” PLEASE CLICK HERE
For the latest information on coronavirus, please check here CDC Website
For the latest Virginia information on coronavirus, please check here Virginia Information
WASHINGTON – 3/22/2020 — Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020. The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.
the Setting Every Community Up
for Retirement Enhancement Act of 2019
(the “SECURE Act”) is
Effective January 1, 2020
- Clients should review their planning in light of the SECURE Act. What follows are highlights of the provisions most likely to affect our clients
- The Secure Act takes effect on January 1, 2020.
- IRA owners may contribute to traditional IRAs after age 70 ½.
- The age for required minimum distributions increases from 70 ½ to 72, effective for distributions required to be made after December 31, 2019, and with respect to individuals who attain age 70 ½ after that date.
- Since the change is from 70 ½ to 72, someone born in the first half of the year will have two additional years before having to begin taking distributions, while someone born in the second half of the year will only have one additional year before having to take distributions.
- A person who reached or will reach age 70 ½ by December 31, 2019, will remain subject to the old rules.
An employee who is not a 5% owner (with attribution) may defer benefits until retirement; and no distributions are required from a Roth IRA.
- Qualified plan and IRA benefits generally have to be distributed within 10 years of the employee or IRA owner’s death. reached his or her required beginning date.
- There are exceptions for designated beneficiaries who are the employee’s or IRA owner’s spouse or minor child, a disabled or chronically ill person, or a person not more than 10 years younger than the employee or IRA owner (an “eligible designated beneficiary” or “EDB”).
- An EDB may take distributions over his or her life expectancy.
- Upon the death of an EDB, the remaining balance must be distributed within 10 years.
- A minor child ceases to be an EDB upon reaching majority. Any remaining balance must be distributed within 10 years from when the minor reaches majority.
- A trust for the benefit of one or more disabled or chronically ill EDBs will qualify for the exception to the 10-year rule, provided no one who isn’t a disabled or chronically ill EDB may become a current beneficiary until after the death of all of the disabled or chronically ill EDBs. This allows IRA owners to leave IRA benefits to special needs or other trusts for disabled or chronically ill EDBs without losing the stretch.
We hope this helps