Tax Corner

Posted on December 28, 2021 by The Weekly Commentary

APTC / EIP Information Letters
The IRS announced that it would issue information letters (6419) to Advance Child Tax Credit (APTC) recipients starting in December and to recipients of the third round of the Economic Impact Payments (EIPs) (known as the stimulus payments) at the end of January. Using this information when preparing a tax return can reduce errors and delays in processing. The Service also urged taxpayers receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.

Required Minimum Distributions (RMDs)
Effective 1/1/2022, the IRS will begin using a new table when calculating RMDs from your tax-deferred retirement plans. Once you reach age 72 (or age 70 ½ if you reached 70 ½ before 1/1/2020), you are required to take a distribution from your accounts based on the account balance at the end of the preceding calendar year and an IRS tables based on your age. The new table lowers the amount you are required to distribute annually. (You may always take a distribution larger than this amount, if needed.) The goal of lowering the required distribution is to provide retirement funds to participants for longer due to the increasing life spans.

Valley National Financial Advisors, and its family of companies, has been in the Lehigh Valley since 1985. The company is independent and locally owned. As a respected and trusted organization, our relationships with many clients and their families transcend generations. We have the expertise to provide clients with financial strategies to effectively manage their existing assets and to provide for the eventual transfer of their wealth.

Our one-stop service model includes: Financial Planning – Investment Management – Estate Planning – Retirement Planning – Education Planning – Tax Planning & Preparation – Insurance Planning – Trust Services, offered as a Trust Representative Office of National Advisors Trust Company, FSB – ExecutiveEdgeTM, Personal Financial Planning for Corporate Leaders. Our services are provided by a team of objective professionals and managed by one contact person – your personal financial advisor.

Valley National Financial Advisors is proud home of the Lehigh Valley’s most CFP® – Certified Financial Planner Professionals^TM. Among other honors, Valley National has been voted Best Financial Planner in the Lehigh Valley seven times by the readers of Lehigh Valley Magazine, and ranked among FA Magazine’s Top RIAs and AdvisorOne’s Top Wealth Managers.

For more than years, our firm has been devoted to helping our clients to achieve their hopes, dreams and aspirations. This requires a delicate balance between the science of financial planning and the art of understanding the feelings and emotions of our clients and their families.

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