Certified Public Accountants and Advisors

News

Required Minimum Distributions (RMD) 

The Internal Revenue Service (IRS) requires taxpayers to withdraw minimum amounts from traditional IRAs & 401(k)s by age 70 ½.  If you fail to withdraw at least the minimum requirement you may be subject to penalties.  

Many taxpayers determine their withdrawals based on need and start prior to age 70 ½.  We have seen many taxpayers continue to work past “normal” retirement age. This allows for the delay in the use of retirement funds. 

Your required minimum distribution is calculated by takinyour account balance at December 31st of the previous year and dividing it by your life expectancy.  

We are providing you with a withdrawal schedule based on age and how much you need to take in order to meet the RMD. And please don’t forget, your RMD is subject to federal income taxes and in some cases state income taxes as well.  

We would be happy to assist you in determining the appropriate income taxes to be withheld. 

Age

Payout rate

70

3.65%

71

3.77%

72

3.91%

73

4.05%

74

4.20%

75

4.37%

76

4.55%

77

4.72%

78

4.93%

79

5.13%

80

5.35%

81

5.59%

82

5.85%

83

6.13%

84

6.45%

85

6.76%

86

7.09%

87

7.46%

88

7.87%

89

8.33%

90

8.77%

https://www.irs.gov/newsroom/get-ready-for-taxes-for-many-time-is-running-out-to-avoid-a-tax-time-surprise-check-withholding-make-estimated-payments-now

Income Tax Rates and Brackets
https://www.linkedin.com/feed/update/urn:li:activity:6369265520717369344
Our summary of the Tax Cuts and Jobs Act. Please contact us for more information on how these tax developments may affect you or your investments.

Tax Alerts
Tax Briefing(s)

Tax-Related Portion of the Substance Use–Disorder Prevention that Promotes Opioid Recovery and Treatment (SUPPORT) for Patients and Communities Act, Enrolled, as Signed by the President on October 24, 2018, P.L. 115-271


Congressional Republicans are looking to move forward with certain legislative tax efforts during Congress’s lame-duck session. The House’s top tax writer, who will hand the reins to Democrats next year, has reportedly outlined several tax measures that will be a priority when lawmakers return to Washington, D.C., during the week of November 12. However, President Donald Trump’s recently touted 10-percent middle-income tax cut does not appear to be one of them.


The Senate Finance Committee’s (SFC) top ranking Democrat has introduced a bill to restore a retirement savings program known as myRA that was terminated by Treasury last year. The myRA program was created by former President Obama through an Executive Order.


A new, 10 percent middle-income tax cut is conditionally expected to be advanced in 2019, according to the House’s top tax writer. This timeline, although largely already expected on Capitol Hill, departs sharply from President Donald Trump’s original prediction that the measure would surface by November.


IRS Commissioner Charles Rettig gave his first speech since being confirmed as the 49th chief of the Service at the American Institute of CPAs (AICPA) November 13 National Tax Conference in Washington, D.C. "You’re going to see things [I do] and go, ‘I can’t believe he did that,’" Rettig said.


The American Institute of Certified Public Accountants (AICPA) and the American Bar Association (ABA) Section of Taxation are urging the IRS to make extensive changes to proposed "transition tax" rules.


Last year’s tax reform created a new Opportunity Zone program, which offers qualifying investors certain tax incentives aimed to spur investment in economically distressed areas. Treasury Secretary Steven Mnuchin has predicted that the Opportunity Zone program will create $100 billion in private capital that will be invested in designated opportunity zones.


The IRS is expected to soon release proposed regulations for tax reform’s new business interest limitation. "They are so broad that nearly every domestic taxpayer will be impacted," Daniel G. Strickland, an associate at Eversheds Sutherland, told Wolters Kluwer.