PANC 2021: Tax Rates, RMDs and Retirement Income Planning
Just as retirement savers use investment diversification for accumulating assets, they need tax diversification for retirement income planning.
A Few Key Lessons to Learn From Wealth Managers
Unintended Tax Consequences Arise When the RMD Date Shifts
Take It Past the Limit
What Advisers Should Know About RMD Rule Changes
A new research report out of the Wharton School suggests changes to required minimum distribution (RMD) rules might not have as big an impact in practice as many might expect, though one subset of clients seems likely to benefit the most from an older RMD age.
SECURE Act and CARES Act Still Demand Client Diligence
As an example, if a plan sponsor has not yet started tracking part-time employees to see whether they accumulate 500 hours of service in 2021, they should begin doing so immediately.
New Life Expectancy Tables Will Decrease RMDs
The IRS has issued final regulations on mortality tables to be used for calculating required minimum distributions, which reflect longer life expectancies.
IRS Issues Supplemental SECURE Act Guidance
Though many in the industry remain focused on addressing the challenges of the pandemic, major changes to the U.S. retirement planning landscape continue to unfold, thanks to the SECURE Act.
IRS Establishes CARES Act RMD Rollback Framework
Anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back.
House Passage of Heroes Act Brings Test of Senate’s Stimulus Appetite
The close passage of the Heroes Act in the House of Representatives, with 208 yeas and 199 nays, underscores the difficult path ahead for the fourth coronavirus relief package.
SECURE Act Update: IRS Provides Required Minimum Distribution Relief
Among its many popular provisions, the SECURE Act extended the age at which one must begin making withdrawals from tax advantaged savings.
Legislative and Judicial Actions
IRS Proposes Changes to Tables Used in RMD Calculations
The purpose of any such updates would be to increase the effectiveness of tax-favored retirement programs by allowing retirees to retain sufficient retirement savings in these programs for their later years, the IRS says.
Individuals Concerned About Impact of RMDs on Taxes
Nearly one-third (32%) of individuals surveyed by Allianz Life Insurance Company of North America say they have difficulty understanding how required minimum distributions could impact their overall tax obligation.
Senators Portman and Cardin Offer Another Retirement Reform Bill
A bipartisan pair of Senators introduced another retirement-focused piece of lame duck legislation, including more than 50 provisions aimed at increasing savings in DC plans and IRAs.
Industry Weighs President Trump’s Executive Order on MEPs, RMDs
The president on Friday signed an executive order directing the Treasury Department to reassess required minimum distributions from 401(k) plans and ordering DOL staff to explore the possibility of allowing small businesses to join open multiple employer plans.
IRS Issues Guidance Regarding 403(b) Plan RMDs and Missing Participants
A memo to examiners lists actions 403(b) plan sponsors should take to locate missing participants in order not to be challenged on violating RMD rules.