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.
25-59 Steinway Street, Astoria, NY 11103
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
WINNER 3 YEARS IN A ROW!
BEST PERSONAL INJURY LAWYER
WINNER 2 YEARS IN A ROW!
Admitted in NY, NJ and Washington DC
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
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
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
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.