Your Guide To Tax Season and Tax Law Updates.

TAX TIP OF THE DAY| Spending Virtual Currency

Every time virtual currency is “spent” on goods & services, a taxable transaction has occurred that needs to be reported on your tax return! For owners of highly-appreciated cryptocurrency, this could cause an unintended tax bill.

IMPORTANT TAX FILING DATES | Keeping You Prepared and On Time

Tax Filing Deadline | Tuesday, April 18, 2023

2023 RETIREMENT PLAN LIMITS | As Set by the Internal Revenue Service

For the 2023 tax year, the following are limits set by the IRS for contributions to your retirement plan(s).

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is $22,500 for the 2023 tax year.

The limit on annual contributions to an IRA for the 2023 tax year is $6,500 ($6,000 from 2019 to 2022). The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains at $1,000.

Under the SECURE Act passed in December 2019, significant changes were made to IRA and retirement plan rules.  A few of the most impactful changes include:

  • Repeal of the maximum age for making traditional IRA contributions at age 70½.
  • Increase in the Required Minimum Distribution (RMD) beginning age from age 70½ to age 72 for retirement plans and IRAs.
  • Partial elimination of the popular “stretch IRA” strategy.

More changes were recently made under the SECURE 2.0 legislation that was passed in late December 2022, including:

  • Increase in the RMD beginning age from age 72 to age 73, starting on January 1, 2023. The age will be adjusted again in 2033 to age 75.
  • Decreased penalty from 50% to 25% for missed RMD distributions (and further reduced to 10% if the missed RMD is corrected within two years).
  • New Roth options for catch-up contributions, employer contributions, and SEP and SIMPLE IRAs.
  • Creation of a nationwide “lost and found” database for retirement accounts.
  • Qualified Charitable Distribution (QCD) limit of $100,000 will be indexed for inflation, allowing taxpayers to donate more funds annually from their IRAs. Additionally, IRA owners will now be able to make a one-time distribution, up to $50,000, to fund a charitable remainder trust or charitable gift annuity.
  • New (but limited) rules allowing rollovers for unused 529 plan funds into Roth IRAs
  • And many more!

(Source: External Website Arrow)

2023 Tax Season Checklist

To prepare for the tax filing season, there are several things you should take into consideration.
Review our 2023 tax filing season checklist to plan accordingly.


Because Central Trust Company typically awaits receipt of your final tax information, we want you to be aware of when you will receive your yearly tax documents.

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