This year has been quite the year for reasons that you are well aware of but as with anything else in life, there is always a silver lining. In our case, we find the silver lining in ways to save you taxes! Back in March of this year, the government passed the CARES Act to provide help to the American economy and here is a way that you might be able to take advantage of the act.
Did you know:
You can withdraw up to $100k from your retirement accounts (401k, IRA, etc.) before 59.5 years old
You DON'T have to pay the 10% early withdrawal penalty
You can pay the taxes owed on your distribution over 3 years
You can even repay what you withdrew within 3 years with NO PENALTY
If your business is expecting to have a loss in 2020, I can help you pay ZERO taxes and ZERO penalties on a withdrawal from your retirement accounts
You might be asking "Why would I withdraw money from my retirement account if I don't need the money right now?". With some tax planning, we might be able to shift your money out of your 401k to a tax advantaged account, so that when you withdraw this money down the road when you retire or need the money, your taxation on the funds may be SUBSTANTIALLY lesser than if you withdrew the funds from your 401k. DO NOT withdraw money from your retirement accounts before consulting with us about your potential tax implications and completely understanding how the CARES Act works.
We are always looking out for ways to help our clients take advantage of ways to pay less taxes. If you need help saving money from taxes, or if you know anyone who can use our help please be sure to tell them to give us a call. We help our clients with Financial Planning, Tax Planning, Tax Preparation, and Payroll and would love a referral from you!
As always, we are here to help you and are thankful for your loyalty and business. YOU are the reason we have been able to continue to help so many people since 1985.