In early November, the IRS announced cost of living adjustments that increased many of the limitations placed on retirement plans and other retirement-related items for the 2019 tax year. An overview of changes can be found below. Please reach out to us if you have any questions or concerns on these changes.

The Bipartisan Budget Act ena cted on February 9, 2018, provided legislation that eases hardship withdrawals from employer sponsored 401k and 403(b) retirement plans for plan years beginning after December 31, 2018.

An amendment to the Family and Medical Leave Act (FMLA) of 1993 was included in the December 2017 tax reform bill to allow eligible employers to receive a tax credit for providing paid time off to qualifying employees under certain circumstances. 

A new tax-saving vehicle called Qualified Opportunity Funds was created by the Tax Cut & Jobs Act to spur investment in distressed communities. The objective is to leverage some of the $6.1 trillion of unrealized gains in the marketplace today by allowing a deferral of gain recognition to allow funds to be put to work in the targeted communities. There are 33 opportunity funds identified in the great Baton Rouge Area, 44 in the New Orleans area, and a total of 150 in the state of Louisiana that provide opportunity for investment. To see the complete list of Qualified Opportunity Zones approved, visit the CDFI fund website.

here has been an outbreak of two new variations on phishing scams targeting taxpayers. In one, scammers use phone calls to try to convince you that your SSN is at risk of being “deactivated” and may state that this is due to overdue taxes or just generic “illegal activity.” In another, scammers are sending letters in the mail warning of delinquent taxes owed to non-existent agencies, such as the “Bureau for Tax Enforcement.” In each, scam artists are attempting to get you to provide your SSN, bank account numbers, and other personal information. If you receive any suspicious notifications, you should NOT engage in any communication with the sender.

Recent federal and state laws have added flexibility to Section 529 savings plans. For background, 529 plans are tax-advantaged savings plans created for a beneficiary, usually a child. When the beneficiary goes to college, he or she can withdraw those funds for qualified education expenses. If funds are used in another way or refunded expenses are not recontributed in 60 days, then taxes and penalties apply. We have put together the following recap of recent developments in case you missed something that could be helpful to you and your family.

During the 2018 Third Extraordinary Session of the Louisiana Legislature, the overall state sales tax rate was decreased from 5% to 4.45%. The effective date of the new tax rate is July 1, 2018.