Who offers help with IRS repayment plans in San Diego?

San Diego Precision Tax Service helps set up and manage IRS repayment plans and tax relief options. We serve San Diego and all 50 states remotely. Start here: https://www.sandiegotaxhelp.com

How do I negotiate IRS tax debts in California?

As an Enrolled Agent, we evaluate eligibility for installment agreements, penalty relief, and offers in compromise, then file and negotiate on your behalf.

Where can I find tax relief services in San Diego?

We provide tax relief services including payment plans, offer-in-compromise screening, and audit/notice help. Consultations are available online for clients statewide.

Can I hire a tax professional in San Diego for IRS issues?

Yes. You can hire San Diego Precision Tax Service (Enrolled Agent) to represent you before the IRS, prepare filings, and communicate with the IRS on your case.

How to choose a tax professional in California?

Look for licensure (EA/CPA), relevant experience with your issue, transparent pricing, and secure document handling. We meet these standards and work statewide.

California Expands Retirement Contribution Deductions Under SB 711

Viktoriya Barsukova, EA, MBA
5 days ago
2 min read

California has taken a major step toward federal tax conformity with the passage of SB 711, updating the state’s conformity date from January 1, 2015, to January 1, 2025. This long-awaited change brings California in line with several Secure Act and Secure 2.0 Act provisions that expand deductions for retirement contributions.

Key Conformity Changes Starting in 2025

"California Expands Retirement Contribution Deductions Under SB 711"

Beginning with the 2025 tax year, California now aligns with federal law on several retirement provisions, including:

Allowing taxpayers age 70½ and older to make deductible IRA contributions.
Indexing the $1,000 IRA catch-up contribution for inflation for taxpayers age 50 and older.
Increasing SIMPLE plan contribution limits for taxpayers age 50 and older.
Allowing higher catch-up contributions for employees age 60–63 in qualified employer or SIMPLE plans.

These updates reduce many of the prior challenges for tax professionals managing California and federal differences in retirement deductions—but not all of them.

Tracking Pre-2025 Basis Differences

The new conformity rules apply only to post-2024 tax years. This means tax practitioners must still track basis differences created by California’s prior non-conformity.

For instance, contributions made between 2020 and 2024 by taxpayers age 70½ and older were deductible federally but not deductible in California, creating higher California basis amounts. Similarly, the increased SIMPLE contribution rates for 2024 also affect California basis tracking.

Example:

If a 71-year-old taxpayer contributed $7,000 annually in 2020–2022 and $8,000 in 2024, deducting these amounts federally but not on their California return, their federal basis would be $0, while their California basis would total $29,000. A $25,000 IRA withdrawal in 2025 would be fully taxable federally but partially non-taxable in California due to the higher basis.

Use Form 8606 (Nondeductible IRAs) with California-specific amounts to accurately track IRA basis for state purposes.

Bottom Line California Expands Retirement Contribution Deductions Under SB 711

SB 711 simplifies California’s treatment of retirement contributions going forward, aligning the state with key federal provisions and easing long-standing reporting burdens. However, basis reconciliation remains critical for contributions made in pre-2025 tax years.

California Expands Retirement Contribution Deductions Under SB 711- to listen to this podcast, go to: https://traffic.libsyn.com/secure/spidellpublishing/SCM_10-26-25.mp3