Attorneys are having to get creative with many facets of continuing to practice law. From meetings electronically to court appearances by phone. Yesterday, I took 2 clients to the bank to have their documents witnessed. Can you imagine going in to a bank with a face mask? It was unusual. But it worked. My clients are very relieved to have this task completed. And thank you North Shore Bank for assisting me with this important and necessary function. I have also stood outside windows and watched signings and used binoculars for high rises with balconies to watch signings. As always, I am here to serve.
Tax legislation is coming fast and furious. Amazing how thing get passed in a time of crisis. You and your accountant will become best friends, if you aren’t all ready, as soon as this is all over. There is tons of income tax planning to do for this year. There is also money available from various sources, if needed, or waiver of taking income if not needed. A couple of the top points for you in the most simplest of terms are:
1. You can still make contributions to your IRA accounts and HSA/MSA accounts until July 15, 2020. I know it sounds counter intuitive to take money and tie it up at this time, but there really is nothing better for increasing wealth than these types of accounts.
2. If you don’t need money from your IRA you do not have to take your 2020 required minimum distribution.
3. You can now borrow more from your retirement plan that you could have in the past. You may now borrow the lesser of 100% of the vested amount or $100,000.
4. You may also withdraw without the 10% penalty for those not yet 59 1/2 if it is for adverse financial consequences as a result of COVID-19. You can also repay the money back to your account within 3 years of the withdrawal.
5. The ability to take deductions for charitable contributions will be increased for this year. If you claim the standard deduction, you may also claim up to $300 for cash contributions to charities. Itemizers can claim 100% of AGI (up from 60%) towards their charitable deduction.
I love a website with a blog. Now I have a platform to write about all the fun things I get to do as an attorney. So look for more posts and feel free to ask me to write about various topics that are of interest to you.