(Tuesday, July 14, 2020, 10:45 p.m. EST) A confluence of events have suddenly aligned to create a major tax planning opportunity for individuals who are currently taking IRS-mandated required minimum distributions (RMDs) from an individual retirement account or are about to start taking RMDs.
(Tuesday, July 7, 2020, 7:09 p.m. EST) Business owners who were unable to qualify for federal Covid-crisis emergency assistance from the Payment Protection Program (PPP) need to know about the Main Street Lending Program (MSLP).
(Tuesday, June 30, 10 p.m. EST) After paying a terrible price in lost lives, suffering, and grief, the Covid economic crisis will pass, along with emergency tax relief in the history-making $2.2 trillion CARES Act of 2020. The tax law with us permanently, and the rules that will be affecting you every year for years to come, is the SECURE Act.
(Wednesday, June 24, 9 p.m. EST) An unusual confluence of financial, tax and investment events make converting traditional retirement account assets to Roth IRAs compelling in 2020 to retirees and those about to retire.
(June 16, 2020; 10 p.m. EST) Federal emergency aid legislation suspends required minimum distributions (RMD) for 2020. If you do not need the income from your IRA or retirement plan, here are tips to maximize the benefit and build your retirement income portfolio.
(Tuesday, June 9, 2020, 9:07 p.m. EST) The Paycheck Protection Program Flexibility Act (PPPFA) of 2020 modified terms of forgiveness for loans to businesses under the Paycheck Protection Program (PPP) on June 5, 2020.
(Tuesday, June 2, 2020, 9:07 p.m. EST) Business owners are in a tight spot: Federal tax rules have eased restrictions to allow those harmed by the epidemic to borrow from their IRA or federally qualified retirement plan; but without careful planning, business owners taking a loan from your retirement savings to support your business could land you in an even worse personal financial position if you are unable to repay it. . Here's what business owners facing challenges need to know now.
(May 26, 2020, 8 p.m. ET) The new Coronavirus federal aid package, the CARES Act, expands options for distributions from IRAs and qualified retirement plans.
(May 20, 2020, 8 p.m. ET) As mandated by the Coronavirus Aid Relief & Economic Security (CARES) Act on March 27, individuals harmed by the epidemic may make withdrawals from an IRA, 401(k) or 403(b) account before age 59½ without facing the usual 10% federally-imposed early withdrawal penalty.
(May 13, 2020, 4 p.m. ET) During this bleak period in world history, amid the terrible news of death, sickness and financial destruction, there are reasons for hope and promising signs of a U.S. recovery from the Covid-19 pandemic.
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How To Avoid State Income Tax On Distributions From IRAs
Do you own a large IRA and live in a state with an income tax? Consider setting up a non-grantor trust in a state with no income tax. While this financial planning tactic may sound exotic, it's common sense and can make a material difference in your life and beyond.
Placing the IRA in a non-grantor trust in a state with no income tax avoids state income taxes. That's big! In addition, beneficiaries of your IRA would also benefit. Your spouse, children and other IRA beneficiaries could expect to get more from your largesse after you're gone.
Under the SECURE Act bill expected to be enacted before the end of 2019, your heirs would be required to distribute the IRA you leave them within 10 years.
According to Financial Advisor News Service, which we are licensed to distribute, naming your IRA beneficiary a non-grantor trust in a state with no income tax may allow your beneficiaries to avoid paying state income tax on the distributions from the IRA.
To be clear, income from your IRA could be free of state income tax by applying this strategy! A recent U.S. Supreme Court decision upheld the legal concept behind this strategy and out-of-state trusts are likely a device that retirees will hear about in the mainstream financial press in the months ahead. This is a fluid new area of legal and financial regulation and requires legal and tax advisors familiar with your personal situation.
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