Happy New Year!
Congress spent the final days of 2022 on new reforms designed to help Americans save more for retirement.
You may hear the changes called SECURE Act 2.0, which is a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act enacted into law in late 2019.1
SECURE 2.0 contains dozens of provisions, but one key change is critical to understand. Starting January 1, 2023, the age at which owners of retirement accounts must begin taking required minimum distributions (RMDs) increases to 73 years of age. And starting in 2033, RMDs may begin at age 75.2
If you have already turned 72, you must continue taking distributions. But if you are turning 73 this year, we may want to revisit your approach.
SECURE 2.0 was tucked in the $1.7 trillion federal spending bill, so as more people become familiar with the legislation, expect more details to emerge. In the meantime, reading LPL's Top 10 Provisions in Secure 2.0 is a good place to start. If you have any questions, please don’t hesitate to call.2
1. PlanAdvisor.com, December 23, 2022
Keep Well-Organized Records Until Period of Limitations Expire
Well-organized recordkeeping makes it easier to prepare your tax return and provide evidence of tax deductions. According to the IRS, you must keep records, such as receipts, canceled checks, and other documents that support an item of income, a deduction, or a credit appearing on a return as long as they may become material in the administration of any provision of the Internal Revenue Code. Depending on the assessment, these periods of limitation can range from 3 years to no limit.
There are also periods of limitations for refund claims, which range from 2 years to 7 years. The IRS recommends keeping records of property records, healthcare insurance, and business income and expenses, among other categories.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov
Name the three English-language three-letter words that begin and end with the letter E.
JANUARY 2023 Newsletter: SECURE Act 2.0 Passed In Final Days Of 2022
January 06, 2023