Proposed Changes to IRA Minimum Distribution Rules


On May 23, 2019, the U.S. House of Representatives approved legislation that relaxes the rules for mandatory minimum distributions for retirement savers. Currently, an individual is required to take minimum distributions from an IRA at age 70 1/2.  If the legislation, as passed by the House, is passed by the Senate and signed into law by the President, the age, … Read More

Section 199A Threshold Increased in 2019



The Tax Cuts and Jobs Act of 2017 (the “Act”) cut the corporate income tax rate from 35% to 21% for tax years beginning with 2018.  In addition, the Act reduced the top individual rate to 37%.  So, where does this leave a “pass-through entity”, such as an s-corporation, LLC or partnership, whose income is taxed to the entity’s owner … Read More

Pension Contribution Deductions


Pension Contribution

As long as a qualified retirement plan is established by the end of an employer’s tax year, contributions to the plan may be deducted in that tax year, even if not actually paid until the following year.  The only requirement is that contributions be made before the due date of the sponsor’s tax return, including extensions.  For example, if a … Read More

Planning for Retirement: What Retirees Fear and Do Not Understand



Saving for retirement is important. If you start saving early, save consistently, and monitor your investments, you hopefully will have accumulated enough savings for retirement.  But how much is really enough? A study in BMO Wealth Management, “The Aging Economy: Improving with Age,” found that many Americans have substantial concerns about their retirement years.  They fear that health and financial … Read More

Cash Balance Plans 101

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Cash Balance

There is a lot of interest in cash balance plans.  Both clients and their advisors have been asking us about cash balance plans. This article will discuss what a cash balance plan is and how it works. A cash balance plan is a type of defined benefit pension plan.  It is subject to the same minimum and maximum benefit and … Read More

Maximum Pension Limits for 2019

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Pension Limits

Each year, the IRS sets limits for pension plans. These limits are reviewed annually and adjusted for inflation. The following are some important limits in effect for 2019: Maximum compensation for plan purposes is $280,000 Maximum monthly benefit for defined benefit plans ages 62 to 65 is the lesser of 100% of compensation or $18,750 with an annual benefit $225,000 … Read More