We are geared up for tax season and have a few things to share with you. The Setting Every Community Up for Retirement Enhancement Act (Secure Act) was enacted on December 20, 2019. Key features include; beginning this year retirement minimum distributions start at age 72 not 70 ½, the age limit on contributions to an IRA have been eliminated, and you can use up to $5,000 of your retirement money for birth or adoption of a child without penalty.
There are also new tax credits to employers for establishing a retirement plan, and putting auto-enrollment into place.
There are also a few changes in the law that are retroactive. These include tuition credits, mortgage insurance deduction, and discharge of debt exclusion on primary residence. These items may or may not make a difference on your 2018 tax return. Ask us and we will figure it out for you!