Tax Advantaged Accounts

On March 27, 2020, the President signed the CARES Act. Since then, additional guidance provided by the IRS gives IRA owners and beneficiaries the opportunity to repay to an IRA amounts that under normal circumstances would have been an RMD for 2020, allowing these individuals to avoid paying tax on the distribution.

This article discusses federal income tax withholding as it applies to nonperiodic traditional IRA distributions. In addition to reviewing the withholding notification, remittance, and reporting requirements for which a financial organization is responsible, this article reviews the withholding options available to an IRA owner or beneficiary.

On Wednesday, May 20, 2020 the Internal Revenue Service (IRS) released Revenue Procedure 2020-32 announcing the cost-of-living adjustments (COLAs) applicable to Health Savings Accounts (HSAs) for 2021.

Initially posted on April 20, 2020 this article explains the postponement of Specified Time Sensitive Actions until July 15, 2020. Notice 2020-35, recently released by the IRS, further postpones the 2019 Forms 5498 reporting deadline. As a result, this article has been updated.