2019 Tax Extenders & SECURE Act

Extended Tax Provisions

Late year tax law changes you should know about!

• Qualified Tuition deductions have been reinstated for 2019
• 7.5% Reduction for Medical Expenses is continued for 2019 & 2020 (Was 10%)
• Mortgage Insurance Deduction extended
• Cancellation of Debt Relief for primary residences retroactive to 2018 (Amend?)

California does not conform to these provisions at this point!

SECURE ACT

This new las becomes effective January 2020 and makes some significant changes to retirement plans and their provisions!

Among the changes are;

• Required Minimum Distributions don’t have to start until reach age 72 (was 70 ½)
• You can now make IRA contributions to a Traditional IRA after age 70 ½ if you have earned income. This will bring traditional IRA’s in line with similar Roth IRA provisions.
• Inherited IRA’s will have to be distributed within 10 Years. Exceptions for beneficiaries who are
  • Spouses
  • Minors
  • Disabled
  • Less than 10 years younger than the deceased
• 401(k) changes
  • Now available for Part Timers
  • Annuities can be an investment option
  • Small Employers can group together and have a Multiple Employer Plan to lower costs

California does conform to these changes!

The IRA changes are a good excuse to review your retirement plans and see if you will want to make changes or adjustments to your financial plans.

We’ll have more details here as they become available.

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