Tax Strategies for Advising Retirees After OBBBA and SECURE 2.0

There are numerous considerations for retiring taxpayers. These taxpayers are approaching or have reached the eligible age to receive Social Security benefits, Medicare, and required minimum distributions (RMDs). Recent legislation has significantly affected tax planning for retirees. The OBBBA added a $6,000 deduction for taxpayers who are age 65 or older. The deduction is phased out for taxpayers with modified adjusted gross income over $75,000 ($150,000 MFJ). 

Changes under the SECURE Act—including raising the age for RMDs from 70 and a half to 72, eliminating stretch IRAs, and removing the age requirement for IRA contributions—complicate tax issues for these clients.

There are steps that tax advisers can use with retirees to reduce taxation of their lifetime earnings. Coordinating and planning future cash flow from pensions, Social Security, and other personal assets can amount to substantial tax savings. Roth conversions, making qualified charitable distributions (QCDs), and considering spousal and ex-spousal Social Security benefits when appropriate can minimize future tax consequences.

Listen as Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP of Pon & Associates, provides his insights and experiences on tax adviser techniques to minimize taxation of taxpayers approaching or in retirement.

I. Tax strategies for retirees: an overview

II. Recent legislation

A. OBBBA

B. Secure 2.0

III. RMDs

IV. Roth conversions

V. Medicare planning

VI. Charitable contributions 

A. OBBBA changes

B. QCDs

VII. Tax-efficient portfolio withdrawals

VIII. Recent IRS guidance and court cases

The panelist will review these and other critical issues:

• Planning strategies for Social Security benefits
• Modified adjusted gross income limits for Medicare
• Changes made to RMDs by the SECURE Act
• When and how to initiate Roth conversions
• Making charitable contributions after the OBBBA
• How QCDs can minimize tax

Learning Objectives

After completing this course, you will be able to:

• Determine when and how to initiate a Roth conversion
• Recognize when to make charitable contributions and QCDs
• Ascertain the modified adjusted gross income limits for Medicare
• Discern planning strategies for Social Security benefits
• Select the most tax-efficient portfolio withdrawals
• Determine the impact of recent tax legislation and impending tax legislation on retirees

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

  
  

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).