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IMPORTANT!!   Tax Season Info and BIG Changes to Retirement Accounts

IMPORTANT!! Tax Season Info and BIG Changes to Retirement Accounts

January 23, 2023

The holiday season is over, and we now enter TAX SEASON!  As always, we wanted to remind you of important timeframes, give you some quick tips AND share new information to make this time of the year go as smoothly as possible.  


Please remember that we at Purpose Planning do not control when tax forms become available. The following dates are only guidelines and actual delivery dates may vary.

First, if you have paperless access to your accounts you should log onto those websites now to make sure your login and password are working.  If you are receiving paperless statements and confirmations for an account you may not receive a paper tax form either. Be prepared to log into those accounts to access your tax forms.

The scheduled dates for mailings/postings start January 31st and go through March. 

  • January 31st: 1099-Rs  **Distributions from qualified retirement accounts
  • March 15th: All other 1099s from non-qualified accounts  **You may get initial documents earlier but sometimes those documents end up needing revisions
  • Late March: K-1s and revised 1099s
  • Please make sure you are providing your CPA with the final version of your tax documents


Tax Day is Tuesday, April 18th.


  • The age at which retirement account owners must begin taking RMDs has increased from 72 to 73, effective in 2023
  • If you turned 72 in 2022 or earlier, you will need to continue to take your RMDs as scheduled. If you turned 72 in 2022 and delayed your RMD until 2023, you are still required to take it by April 1, 2023, plus take your 2023 distribution in 2023
  • Starting in 2023, RMD penalties for those who fail to take their distribution will decrease from 50% to 25% of the RMD amount not taken. The penalty is reduced to 10% for IRA owners if corrective action is taken in a timely manner
  • Starting in 2024, Roth accounts held in employer retirement plans will be exempt from RMD requirements

REMINDER ABOUT QCDs (Qualified Charitable Distributions)

For everyone taking an RMD and gifting to a charity, you have an option that more and more clients are taking advantage of.  This option is called a Qualified Charitable Distribution (QCD).  It allows you to gift money from your IRA directly to a charity and results in this distribution not being taxable.  You can use some or all of your RMD in this way, and if you are gifting to a charity we highly recommend discussing this option with your CPA during this tax season.  

For those of you already taking advantage of this option: please remember that your tax forms do NOT reflect your charitable contribution.  Your tax preparer will file this for you using your 1099R and your receipt from the charitable organization.  Don't forget to discuss this with your tax preparer to insure it is reported correctly.


2023 IRA Contribution Limits HAVE INCREASED

  • Traditional and Roth IRA limits will increase to $6,500
  • If you are 50 or older, you may contribute and additional $1,000 for a total of $7,500
  • You must have earned income to contribute to an IRA
  • Income limits apply to both traditional and Roth IRA contributions

2023 Employer Retirement Plan Contribution Limits HAVE INCREASED

  • If you are under 50 you may contribute up to $22,500 to your 401(k) or 403(b) workplace retirement plan.  **These are your elective deferrals
  • If you are 50 or over you may contribute an additional $7,500 for a total of $30,000

We expect the IRS to complete filings slowly like they have the last several years.  Therefore, we continue to remind you (and ourselves) that we must all be patient.  As you can see, there are some big changes this year to RMDs and retirement account contributions.  We will be discussing these with you throughout the year, however please let us know if you have questions or concerns at this time.   

~ Happy filing!