Tax Relief for Washington Disaster Victims

The IRS announced that the April 15th filing deadline has been extended for victims in the state of Washington who were impacted by the mudslide and flooding disasters.

Affected taxpayers and businesses will have until October 15th to file their tax returns and pay any taxes due.The relief granted to victims also includes an extension for making IRA contributions, quarterly tax payments and filing quarterly payroll and excise tax returns that are normally due by April 15th.

The IRS said that relief will be automatically granted to those located in FEMA designated disaster areas of Washington.Additional relief may be provided, if needed, as investigations and assessments continue.

Any taxpayers qualifying for relief who were impacted but live outside of the designated disaster areas should contact the IRS at (866) 562-5227 for assistance.

IMPORTANT TRUST DEADLINE APPROACHING

For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

admin October 27, 2020

CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

admin May 20, 2020

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

admin April 22, 2020