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30 THE QUEENS COURIER • MAY 30, 2019 FOR BREAKING NEWS VISIT WWW.QNS.COM YOUR PARTNER IN THE STRUGGLE FOR JUSTICE BEST ATTORNEY AND BEST PERSONAL INJURY LAWYER YOUR PARTNER IN THE STRUGGLE FOR JUSTICE JOHN J. CIAFONE ESQ. ATTORNEY THANK YOU! 25-59 Steinway Street, Astoria, NY 11103 718-278-3900 johnjciafone@yahoo.com Call Now & End Your Tax Nightmare! �� Co-Author of the best selling book “Breaking the Tax Code” �� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor �� NYS Certified EMT/EMS BEST ATTORNEY WINNER 3 YEARS IN A ROW! BEST PERSONAL INJURY LAWYER WINNER 2 YEARS IN A ROW! Admitted in NY, NJ and Washington DC TAX TIPS THE NEED TO BOLSTER RETIREMENT SAVINGS BY JOHN SAVIGNANO, CPA Here’s something lawmakers can agree on: The need to bolster retirement savings. But they don’t quite know how to get there. There are multiple bills now in Congress that are intended to help IRA owners and participants in workplace retirement plans such as 401(k)s. The proposals have some overlapping provisions, along with a number of important differences. Here are two of the main proposals. A House version known as the SECURE Act, which passed the House Ways & Means Com. In April. And a years-old, recycled Senate package, commonly referred to as RESA. Among the hodgepodge of ideas: Giving part-timers more retirement options. 401(k) plans would be required to allow employees logging at least 500 hours annually for three years to make salary reduction contributions. Collectively bargained plans would be exempt. This idea, which is opposed by many businesses, isn’t in RESA. Having 401(k) plans show annuity illustrations in benefit statements at least once a year. Participants would see not only their account balance, but also a lifetime stream of monthly payments based on expected-mortality tables. Granting small firm’s a credit for establishing automatic enrollment 401(k)s or IRAs. It would be up to $500 annually for three years to defray start-up costs. Upping the age for taking required minimum distributions from 70 ½ to 72. Note this isn’t in RESA. But another bill recently introduced in the upper chamber would incrementally hike the age for taking RMDs to 72 in 2023 and to 75 by 2030. Letting owners of traditional IRAs make contributions past the age of 70 ½. Allowing early distributions from 401(k)s and IRAs for folks having a baby or adopting a child, without having to pay the 10% fine for pre-age-59 ½ withdrawals. This provision, which is endorsed by Rep. Kevin Brady (R-TX), isn’t part of RESA. Also, requiring many inherited accounts to be cleaned out within 10 years. There’d be exceptions allowing payouts over life expectancy for surviving spouses, kids under 18, folks who are less than 10 years younger than the account owner and the disabled. RESA also addresses this, but with a couple of important changes. It would impose a five-year cleanout (instead of 10). And it would apply the rule only to the extent that the account inherited by the beneficiary exceeded $400,000. Language expanding 529 education savings plan is holding up the bill. The SECURE Act would allow 529 plans to cover up to $10,000 of homeschooling costs per year. Public teachers’ unions and some of the more progressive House Democrats have weighed in with their objections, which is delaying a full House vote on the bill. This might be only a short-term hiccup. RESA doesn’t contain the provision. Lawmakers really want to pass retirement legislation sometime this year. But whether it’s the SECURE Act or some other version is anyone’s guess. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. If you have any questions or require additional information, please call John at 718-707-0955. link /WWW.QNS.COM link