Congress passed an important retirement-savings law called Setting Every Community Up for Retirement Enhancement, or the SECURE Act of 2019. The law takes effect on Jan. 1, 2020. After stalling for months, Congress suddenly passed the bills as an attachment to budget appropriations.
The SECURE Act contains 29 separate provisions, but here are five that are relevant, timely, and likely to change the way we navigate retirement planning, overall financial planning and estate planning.
1. The SECURE Act changes the age of initiation for RMDs from 70 ½ to 72
2. The SECURE Act allows contributions to traditional IRAs after age 70 ½
3. The SECURE Act allows for expanded benefits for part-time employees, debt-ridden students and new parents
4. In most instances, The SECURE Act eliminates ‘Stretch’ IRAs and now mandates inherited IRAs with non-spouse beneficiaries (kids or grandkids) must be withdrawn within 10 years. **Account holders and Beneficiaries are encouraged to review ANY documents pertaining to inheritance of retirement accounts
5. Who does this impact? The SECURE Act impacts all qualified plans, so §401(k), 403(b), 457(b), 401(a), ESOPs, Cash Balance plans, lump sums from defined benefit plans and IRAs, which are the recipient vehicles of most of those plans as rollovers
Stay calm! Now is a good time for a conversation about practical retirement plans with trusted sources. Gather your information and prepare yourself to learn and understand how these changes impact you personally.
Having a team approach will benefit you. Gathering perspectives from the financial, tax and legal sides and working out a retirement and life plan for your unique circumstances is important. If you have an estate plan, this is a good time to review it with your estate planning attorney. If you are working on it – talk with your financial team and legal advisors.
It’s crazy how outside variables impact our planning for life, retirement and after-life. National laws, Congressional bills, State laws and our personal situations change as we go through life. As you focus on your 2020 “To Do List”, this is one item I highly suggest you address.
I’m here as a second set of eyes for you. Is 2020 the year to consider life planning, business contingency planning, taking care of your employees navigating with life and business intersect, deciphering crazy legalese, US citizens preparing to live abroad and for we adult children helping our parents / grandparents transition? Talking about the situations in life we would prefer to avoid isn’t always easy, yet so darned valuable when the time occurs.
Reach out with questions via Email. Additional information is available upon request or on the website @ The Living Planner
#LifeAndBusinessIntersect #CareForPeopleCareForBusiness #StepUpStepIn