When it comes to Estate Planning in Reno NV, many people only think about the future. However, they also need to pay attention to the present. The fact is, there are a number of tax benefits offered for those who are over the age of 50. Knowing what these benefits are can help anyone better plan for their estate and their loved ones after they pass away. Some of these tax benefits can be found here.
Get Caught Up on IRA Payments
In most cases, taxpayers only contribute about $5,500 each year to their retirement plan. However, by the time they reach 50, they have the opportunity to contribute an additional $3,000 to Simple-IRA plans, as well as an additional $6,000 each year for the majority of 401(k)s, Section 403(b) tax-deferred annuities, and Section 457 plans.
Zero-Penalty Retirement Withdrawal Options
If a person is under the age of 59.5 years old, they have to pay a 10 percent penalty to make withdrawals early from their retirement accounts. When they reach this age, the penalty can be avoided from certain qualifying plans. There are some who may be able to avoid this penalty when they reach the age of 55 if they are making withdrawals from a past employer’s qualified plan and they have left the employer permanently. However, keep in mind RMD (Required Minimum Distribution) requirements are always age-dependent and can differ for those who have inherited a retirement account.
The Increased Standard Deduction
As of 2016, the standard deduction for taxpayers over the age of 65 was $1,550 more than what the regulations offer for younger taxpayers. There are other tax-related deductions to consider, as well. The key is to figure out what is offered to make the most of it and to better prepare for their Estate Planning in Reno NV.
There is no question that estate planning and taxes can be difficult to handle. However, when a person knows what to expect and the possible deductions they can receive, they can better prepare for the future. More information about estate planning can be found when a person takes the time to Visit Site.
