SECURE Act planning for individuals

Do you know what impact the SECURE Act will have on your financial, tax and estate plans?

This new legislation became law in December 2019 and could mean changes for you.

Schedule an in-person meeting this year to discuss your personal situation.

Here is a brief overview of the changes affecting individuals:

  • Contributions to traditional IRAs can now be made after age 70.5 but will reduce the benefit of subsequent Qualified Charitable Distributions from the IRA. 
  • The income sources that qualify to make contributions to traditional and/or Roth IRAs have expanded.
  • The age for taking Required Minimum Distributions from 401(k)s, traditional IRAs and defined contribution plans has changed from 70.5 to 72 for those who turned 70.5 after 2019.
  • Most individuals that inherit an IRA, 401(k), 403(b), or profit-sharing account from someone other than their spouse must distribute its full value by the end of the 10th calendar year following the original owner’s year of death — with certain exceptions.
  • Qualified birth or adoption expenses for distributions of up to $5,000 will no longer be subject to the 10% early distribution penalty (though the distributions remain subject to income tax).
  • Education-related 529 plans can now cover costs associated with registered apprenticeship programs and up to $10,000 over a lifetime to cover principal and interest payments on qualified education loans.

How does this specifically affect you, your beneficiary designations, your anticipated inheritance, and your estate plan? How can you maximize benefits under the SECURE Act?

Schedule a meeting with the form below or button above to talk with your tax advisor.

Own a business?

This monumental legislation could mean big changes to your retirement plans. See how the changes could affect your business.