Secure Act

brittanydoggett, Estate Planning, Trust & Probate, James L. Jacobson, John E. Clough, Joseph P. Mattera, Senney Says by Jeff Senney

Understanding the SECURE Act Effective January 1, 2020 is a new spending bill called the SECURE Act (Setting Every Community Up for Retirement Enhancement Act of 2019).  Prior to 2020, most participants were required to take RMDs (required minimum distributions) from employer plans or IRAs by age 70-1/2; however, for those who have not reached…

IRA Distribution after Divorce: Is it Subject to Income Tax and 10% Excise Tax?

Business, Tax & Real Estate, Legal News, Legal News for Businesses, Legal News for Individuals, Litigation, Senney Says by Jeff Senney

The US Tax Court in Rosenberg v. Commissioner, TC Memo 2019-124 has ruled that an IRA distribution, made after a couple divorced, was taxable and subject to the 10% excise tax because: (1) no exception to the 10% excise tax applied and (2) the Court did not find any equitable exception to taxing the distribution.…