Stocks and Interest Rates / 2020 RMD Tax Reporting / Tax Planning Workshops

The 10 Year US Treasury yield closed @ 1.55% last Friday, up .09 for the week, whacking technology stocks! 

For the week, the Nasdaq Composite fell (2.05%) and the Russell 2000 (.38%).  The Dow and the S&P 500 each rose, 1.85% and .84% respectively.

Over the pond stocks were mostly down, approximately (.47%).

We’re now over half way towards where the US 10 Year Treasury Yield was PRIOR to COVID!

On December 31, 2019, the yield was 1.91%.  On December 31, 2020, the yield was .91%.  I’ve been suggesting for a while that we’ll reach the 1.91% level, however this is coming mighty quick!

We should expect stock volatility to continue, as we are entering a battle of an economy receiving a boat load of money with massive pent-up demand, versus rising interest rates and inflation expectations.

Certainly, this will not be a boring spring and summertime season.

RMD’s Rolled Back in 2020 (Tax-Reporting)

As you’re aware, Required Minimum Distribution Requirements were waived in 2020, however many took distributions PRIOR to the change and subsequently “rolled” them back into an IRA.

If you took distributions, you’ve already received form 1099R, reflecting your distributions, however that form will NOT say you put the finds back into an IRA.

Here is how to account for the situation:

  • The Total Distribution, whether or not rolled back, must be reported on Line 4a of Form 1040.
  • If your rolled back the Total Distribution, enter 0 next to line 4b.
  • If you rolled back a Portion of the distribution, enter that portion on line 4b.

As always, it is recommended to discuss the specifics of your situation with your Tax Professional!

Phillies versus Yankees (Awesome)!!

We’ve all been through a lot over the last 12 months.  It was AWESOME to watch the Phillies play the Yankees on TV yesterday. A gorgeous day in Tampa with FANS IN THE SEATS, great pitching and a Grand-Slam Home Run. Even though it was a typical pre-season game, for me, it was anything but.

For me, this represents the true beginning of the re-opening of our economy.  The warm weather is just ahead, and we’re now getting vaccinated at an increasing pace.  Restrictions are being reduced, and it should now only be a matter of time. I’m certainly not naïve to realize that issues may still arise, and we still must exercise common sense and diligence… but I cannot help to have a smile on my face looking forward!

Workshops to Return this Fall!

I’ve had the pleasure to meet so many of you at our in-person educational workshops since 2009.  I’m looking forward to returning as we have workshop dates scheduled for:

September 28th, October 12th, and November 9th.

“Tax Planning through the Stages of Retirement” will be the topic.  Whether you are approaching retirement or currently retired, there will be plenty of beneficial information to assist your financial situation. More details to come… stay tuned!

 

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