Tax Tip: Changes to Traditional IRA Rules
The Secure Act, which went into effect January 1, 2020, changed the rules on traditional IRA contributions and required minimum distributions (RMDs). The old rules disallowed traditional IRA contributions once you reached age 70 ½. The new rules allow traditional IRA contributions to be made at any age (as long as you have earned income). Additionally, the old rules required you to start taking RMDs once reaching age 70 ½. The new rules allow you to wait until age 72.
Consult with your tax professional at Ketel Thorstenson about these or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and Tax Reform affects or questions.