We’re inundated with so many changes to rules related to retirement, that we oftentimes tell ourselves we can just ignore them and “focus on them later.” However, there are some changes you might want to pay attention to now. For example, the changes made by the Secure Act:
Firstly, the Secure Act interest and penalties for missed RMDs from an IRA account, which could go on indefinitely. Currently, there’s a three-year statute of limitations beginning with the filing of the income tax return for the relevant year, which means that the IRS can’t impose a penalty for an RMD you missed earlier than that.
Similarly, there’s a new six-year statute of limitations for excess contributions to an IRA account. Contributions must be at least equal to taxable compensation and the maximum annual contribution of $7,000 for those younger than 50, and $8,000 for those aged 50 and older.
If you’re thinking about what to do about RMDs, or where you can put your money to keep it protected, get in contact with us. We’re always here to help.