November highlights from The MWE Advisor newsletter include: what you need to know about the House Bill and Senate Proposal for tax reform to prepare for year-end tax planning, and understanding the rules for repayment before borrowing money from your retirement plan.
Keep Tax Reform Proposals in Mind When Making Last-Minute Year-End Moves
Many people are struggling with tax planning this year-end. While the fate of congressional tax reform legislation remains uncertain, you and your family can still make some last-minute tax-saving moves before December 31. Here are five ideas, along with some of the tax reform proposals being discussed in Congress that could influence your planning options.
Defaulting on Retirement Plan Loans Causes Taxable Distributions
Before borrowing money from your retirement plan, it’s important to learn the rules for repayment. Otherwise, you could have a deemed taxable distribution and owe income tax plus a 10% early distribution penalty if you’re under age 59-1/2. Here’s the story of two taxpayers who fell into this trap, along with some relief provisions for individuals who take out retirement plan loans to help recover from recent disasters.