A happy couple standing outdoors, man kisses wife on cheek as she smiles. They are saving for their retirement.This year has been unique to say the least, here are just a couple of notes about some retirement rule changes that you should be aware of.

For People In Or Near Retirement:

The RMD (or Required Minimum Distribution) has been waived for 2020. This means if you are by law required to take a distribution from your IRA in 2020, then you can elect NOT to take it out if you don’t want to. Perhaps you don’t need the money or maybe you don’t want to pay the associated taxes. Either way, you don’t have to do it this year. However, there is nothing prohibiting you from doing it either. Like we do each year, Michael Traxler Wealth Management will contact our clients to discuss with them what their plans are.

For People Still Working And Saving:

This year the IRS has extended the tax deadline to July 15th. This means you have until July 15th, 2020 to fund an IRA or a Roth for 2019 if you qualify. Plus, you may be able to fund forward for 2020 as well.  If you are younger than age 50 you can potentially do $6,000 for 2019 and $6,000 for 2020. If you’re age 50 or above, then the max is $7,000 for each year. What’s nice about the Roth is that the main qualifier is your income and whether or not you file single or joint tax returns. If you would like more info on whether or not you qualify, we are here to help answer any questions!

Talk To a Financial Advisor

That’s two things to consider for your retirement plans this year. If you have excess cash savings, then consider the Roth IRA for potential tax free retirement income. Remember to always seek tax advice when making these types of decisions. Michael Traxler Wealth Management, LLC financial advisors can help you, so contact us at 952-758-8060 for a consultation or email mike@traxlerwealth.com.

 

Advisory Services offered through Michael Traxler Wealth Management, LLC, a Registered Investment Advisor in the State of Minnesota.