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Retirement Plan Provisions Changed:

    The starting date for taking required minimum distribu-tions from an IRA is the year the owner turns 72.

    The age 70 1/2 limit for making IRA contributions no longer applies.

    Non-spouse inherited IRAs are now subject to a 10-year maximum distribution period.

    401(k) plans are permitted to adopt qualified birth or adoption distributions.

    Qualified birth or adoption distributions up to $5,000 are exempt from the early with-drawal penalty.


Other Provisions:

The new law also includes a number of miscellaneous provisions, including:

    The repeal of the application of the estate and trusts tax rate to unearned income of children (the kiddie tax) and replacing that tax rate with the use of the parents' tax rate for tax years after 2019.

    The repeal of the parking tax of certain employee fringe benefits.


Consolidated Appropriations Act of 2020 - Extension of Expiring Familiar Provisions:

  • Cancellation of qualified principal residence indebtedness exclusion from gross income:  Extend through the end of 2020.
  • Mortgage insurance premiums deduction:  Extended through the end of 2020.
  • Medical expense AGI limitation threshold reduced from 10% to 7.5% of AGI for all taxpayers for regular tax and for AMT purposes:  Extended through the end of 2020.
  • Tuition and fees deduction:  Extended through the end of 2020.
  • Race horse two years old or younger treated as 3-year property instead of 7-year property:  Extended through the end of 2020.
  • The penalty under the Affordable Care Act (commonly known as Obama Care) for not having minimum essential health insurance coverage is zero effective for 2019 and beyond.
  • Energy efficient home credit for eligible contractors:  Extended through the end of 2020.
  • Non-business energy property credit (i.e., personal residence):  Extended through the end of 2020.