Changes based on Age

Birth year 1949:

Individuals born between 1/1/49 – 6/30/49 are considered to have turned 70½ in 2019 and must take required minimum distribution by 4/1/20.

Individuals born on or after 7/1/49 fall under the new law. They must begin RMD’s by April 1st of the year following the year they turn 72.

Birth year 1950:

If you have delayed receiving your Social Security benefit, this is the year you will start receiving it. Delayed retirement credits end once you turn 70.

Birth year 1954:

Individuals born in 1954 will be turning age 66 this year and are the last group to be eligible for full retirement age (FRA) Social Security benefits. For those born after 1954, the FRA will be increasing incrementally to age 67. See https://www.ssa.gov/planners/retire/retirechart.html for more information.

Birth year 1955:

Individuals born in 1955 will become eligible for Medicare this year. For those who are turning 65, you have a 7-month initial enrollment period during which you can sign up for Medicare without penalty. That period includes the three calendar months prior to your birth month, your birth month, and the three calendar months following your birth month. Late enrollment penalties may be assessed for individuals who do not enroll in parts A, B, or D during the open enrollment period. Go to www.medicare.gov for more information.

Birth year 1958:

When you turn 62 this year, you may choose to receive your early/reduced social security benefit. Also at 62, you now have access to reverse mortgage options, if desired.

Birth year 1970 (or earlier):

Individuals born in 1970, or earlier, are eligible to increase their retirement savings (and decrease their taxable income!) via catch-up contributions. For those participating in a workplace retirement plan, such as a 401(k), the standard contribution limit moves up to $19,500 this year and the catch-up contribution limit increases to $6,500, for a total savings opportunity of $26,000. The amount limits for Individual Retirement Accounts (IRA’s) remains at $6,000, plus a catch-up limit of $1,000.

Here are some important deadlines in 2020 for 2019 tax returns:

January 15th: The 4th (and final) estimated tax payment for the 2019 Tax Year is due. (IRS Form 1040)

January 31st: W-2s and 1099s must be mailed to employees or applicable persons.

February 18th: Financial institutions must mail out Forms 1099-B, 1099-S and 1099-MISC.

February 28th: Businesses must mail Forms 1099 and 1096 to the IRS.

March 16th: Deadline for S-Corps to file Form 1120S and Partnerships to file Form 1065 or request a five-month extension.

April 15th:

Deadline for individuals to file tax returns (Form 1040) or request a six-month extension.
Last day to make a 2019 contribution to traditional IRA, Roth IRA, Health Savings Account, SEP-IRA, or solo 401(k). Note: If you get an extension, you have until 10/15/2020 to contribute to a SEP-IRA or solo 401(k).
Estate and Trust income tax returns (Form 1041) are due, or request for a five-month extension.
Q1 estimated tax payments for 2020 are due.

May 15th: Nonprofits must file Form 990, or extend.

June 15th: Q2 estimated tax payments for 2020 are due.

September 15th:

Due date for S-Corps and Partnerships who filed an extension.
Q3 estimated tax payments for 2020 are due.
September 30th: Extended Estate and Trust tax returns are due.

October 15th: Extended Individual tax returns are due and last day to contribute to a SEP-IRA or solo 401(k) if applicable.

November 16th: Extended Nonprofit returns are due.

Kevin Warman, CIMA®, RMA®

(Last Updated 1/13/2020)