We are kicking off the new year with new tax breaks for businesses and employers!
Here are a few important things to keep in mind for the year 2020. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension (generally through 2020) of more than 30 provisions that were set to expire or already expired.
Two other laws were passed as part of the law (The Taxpayer Certainty and Disaster Tax Relief Act of 2019 and the Setting Every Community Up for Retirement Enhancement Act).
Here are five highlights:
For plans beginning after December 31, 2020 employees can make elective deferrals if they have worked 500 hours per year for at least three consecutive years and has met the age-21 requirement by the end of the three consecutive-year period.
No more Cadillac Tax for tax years beginning after December 31, 2019.
These are only some of the provisions of the new law and do not include all of the rules involved in determining eligibility.
If you have any questions about your situation, don’t hesitate to contact us.