November 6, 2020

November 2020 Newsletter

Here are your Articles for November 6, 2020.

  Duffy Kruspodin, LLP’s News

 

Social Security Benefits Increase in 2021
Approximately 70 million Americans will see a 1.3 percent increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2021. Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W).

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IRS Experiencing Unopened Mail Backlog Processing Delays
The IRS is experiencing processing delays as it works through its unopened mail backlog.

Background—COVID-19 . Due to the COVID-19 pandemic, in March 2020 the IRS suspended or extremely limited many of its live services, including telephone assistance, processing paper tax returns, and responding to correspondence.

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Time to consider a Roth conversion
The “new normal” in 2020 has given many taxpayers plenty of reasons to worry about their futures, not only regarding health and work, but also retirement savings and future tax rates. But times of uncertainty like these should not prevent them from looking for planning opportunities such as the potential benefits of a Sec. 408A(d)(3) qualified rollover contribution to a Roth individual retirement arrangement (IRA) or a Sec. 402A(c)(4) in-plan rollover to a designated Roth account in the same qualified retirement plan. Although the statute refers to only a contribution from a traditional IRA as a “conversion,” this article uses the term “Roth conversion” to also include those from other qualified retirement plans and in-plan rollovers to designated Roth accounts.

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Streamlined IRS Page Helps People Closing a Business:
The IRS has launched a redesigned page at www.IRS.gov/closingabiz to help business owners navigate the federal steps when closing a business. During this difficult and challenging time, the IRS streamlined the “Closing a Business” page into simple steps, so business owners and self-employed individuals can quickly find the information they need to (1) close a business from a federal tax perspective regardless of business type and (2) help take care of employees.

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Medicare Open Enrollment for 2021 Begins October 15
The annual Medicare Open Enrollment Period is the time during which Medicare beneficiaries can make new choices and pick plans that work best for them. Each year, Medicare plan costs and coverage typically change. In addition, your health-care needs may have changed over the past year. The Open Enrollment Period — which begins on October 15 and runs through December 7 — is your opportunity to switch Medicare health and prescription drug plans to better suit your needs.

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IRS: Check Tax Withholdings Now as the Last Quarter of 2020 Begins
WASHINGTON — The Internal Revenue Service today reminded taxpayers that now is the perfect time to review their tax withholding and payments to avoid a surprise when filing next year.

An adjustment or two made now may boost take home pay or allow taxpayers to pay more in the last quarter of 2020 to avoid a surprise tax bill.

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  Timely Opportunities

 

COVID-19-Related Paid Leave Requirements Get a Fine-Tuning
Most business owners know that the Families First Coronavirus Relief Act (FFCRA), which passed in March of 2020, included special paid leave requirements. Now, the rules that govern that paid leave have been modified to bring the original rules into compliance with a federal court decision earlier this year. The overall goal is to ensure that certain employees who are affected by the COVID-19 pandemic get the paid leave they need. Here’s what has changed.

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  Personal Finance

 

Helping Your Kids Achieve Future Financial Security
You might be looking for tax-efficient ways to set money aside for the future of your children or grandchildren. With some planning, you may be able to help them start off their adult lives with at least a modest foundation of financial security. Here’s a quick look at two worthwhile options.

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  Estate Planning

 

Put It in a Letter
If you’re like most people, you don’t spend much time thinking about your own funeral. And yet, many people have a vision about their memorial service or the handling of their remains. A letter of instructions can help you accomplish that goal. Find out more by reading this article.

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  Retirement Plans

 

Do Your Employees Know about the Saver’s Credit?
Chances are you have at least a few employees on your payroll who are relatively low income. Depending on their circumstances, they may qualify for the Saver’s Credit.  Many people have never heard of this credit. You can do them a great service by providing some information about income limits. Keep reading to get the details.

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