March 3, 2020 Financial Planning 0 comment

2020 Tax Law Changes

2020 Tax Law Changes

 

The following is a highlighted list of key tax law changes for 2020. The links provide the source material as well as additional changes that may be relevant to your specific situation.

  1. IRA required minimum distribution age – This age was raised form 70 ½ to 72. If have not turned 70 ½ buy January 1, 2020, then first year when you must begin taking distributions is the year in which you turn 72.
  2. 401(k), 403(b) and 457 plan limits – Contributions raised to $19,500 per year and the catch-up raised to $6,500.
  3. Simple IRA – Raised to $13,500.
  4. IRA – Contributions remain at $6,000 and catch-up remains at $1000.

Many of the levels of eligibility have also been raised. The details may be found at the IRS link below.

https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2020