The Tax Cuts and Jobs Act of 2017, signed into law on December 22, 2017, makes a number of changes that affect individual retirement arrangements (IRAs). The changes are varied and subtle in nature and, while it’s highly unlikely all the changes will affect you, it is very possible that some of the changes could directly impact you as an IRA owner. These changes are generally effective for tax years beginning after 2017.
This brochure is designed to provide you an overview of those changes so you can make informed decisions when managing your IRA.
Specifically, this post discusses the following provisions:
- The repeal of the rule allowing recharacterization of Roth IRA conversion contributions;
- An extended rollover period for plan loan offset amounts;
- The temporary reduction of the medical expense deduction floor;
- The suspension of miscellaneous itemized deductions;
- Use of retirement distributions for 2016 disasters;
- The inclusion of a new qualified hazardous duty area; and
- The repeal of the deduction for alimony payments and for the inclusion of alimony in adjusted gross income.