Important resources to help you navigate the coronavirus (COVID-19) pandemic in Wisconsin
Hub for reliable, timely news about COVID-19 pandemic

Money moves: The rule changes that may impact your bank account in 2020

Data pix.

MILWAUKEE -- We're going to see some big changes with our money in 2020. Financial expert, Brad Allen, joins Real Milwaukee with how your finances could be impacted moving forward.

• The SECURE Act will impact anyone with an IRA or 401(k). This is the first major law impacting retirement savers in more than a decade.
• The new law includes dozens of major changes:
o Contributions to your traditional IRA can be made at any age.
o Those who inherit a retirement account, like an IRA, will be required to withdraw the money within 10 years.
o Required minimum distributions, or RMDs, will be required at age 72 instead of age 70 ½.

New Tax Forms
• The W-4 form has a whole new look! This is the form that tells your employer how much money to withhold for federal income taxes.
• The form is divided into five steps, but only step one and step five are required for all employees.
• If you have already submitted a W-4 form prior to 2020, you are not required to fill out a new form.
• IRS released a calculator to help you determine your withholding. You can find it on my website,
• Be sure to talk with your tax professional if you have questions.

Standard Deduction Changes
• The standard deduction for the 2020 tax year is changing.
• When you file your taxes in April 2021, these are the numbers you need to know: The standard deduction for individuals has increased to $12,400 and $24,800 for married couples.
• The child tax credit has also increased to $2,000 per qualifying child.
• If you have any changes happening in 2020, like getting married, starting a business or having a baby, you will want to use these updated numbers to estimate your tax liability.

Increased Contribution Limits
• If one of your New Year`s Resolutions is saving more for retirement, you`re in luck!
• You can now save up to $19,500 in your 401(k). If you`re over the age of 50, you have the opportunity to contribute an additional $6,500.
• Try to stretch yourself and save as much as you can to put yourself in the best position for retirement.

Social Security Increase
• Social Security benefits will increase by 1.6% on January 1, which averages out to $24 per month.
• Also, the Full Retirement Age climbs by two months to 66 years and eight months.
• Remember, you can claim Social Security benefits at the age of 62, but you will not receive 100% of your benefit until you hit your full retirement age.
• If you aren`t sure what your full retirement age is, it is based on the year you were born. I have a chart on my website.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.