How The SECURE Act Changes Retirement

December 25, 2019

With the start of this New Year come, along with many other things, changes to how Americans can save for retirement. Just before Christmas — when you may or may not have been paying attention — Congress passed a massive spending bill, which President Donald Trump signed into law. Attached to that bill was the SECURE Act, which is about, as it spells out in its name, “Setting Every Community Up for Retirement Enhancement.” It goes into effect Jan. 1.

Inheriting IRAs Just Got Complicated, Thanks To The SECURE ACT

December 21, 2019

The Stretch IRA is snapping back. Congress’s year-end spending package limits the ability of savers to extend the life of their traditional Individual Retirement Accounts and Roth IRAs by leaving the accounts to much younger heirs, such as grandchildren. The change curtails an often simple strategy that has been popular with many IRA owners who won’t spend all the account’s assets. Until the change, the heirs of traditional or Roth IRAs could take required withdrawals over their lifetimes and receive decades of income-tax-free or tax-deferred compounding after the original IRA owner’s death. Now many IRA heirs will have to withdraw the assets within 10 years, rather than based on their own life expectancy. The law takes effect for deaths of IRA owners after Dec. 31, 2019, so IRAs inherited before then still benefit from prior law.

December 20, 2019

As 2019 comes to a close, it’s once again time to think about any tax planning that could be considered before year-end and the steps needed to implement those strategies. While tax planning is typically not just a once-a-year endeavor, a little extra time spent before December 31 can help optimize your tax positioning now and in the years ahead.

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