The Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted in December 2019 as part of a larger federal spending package.
This week, Craig Siminski, of CMS Retirement Income Planning, shares a discussion of the important provisions in the SECURE Act that could affect retirement, tax, and estate planning strategies:
This long-awaited legislation expands savings opportunities for workers and includes new requirements and incentives for employers that provide retirement benefits.
At the same time, it restricts a popular estate planning strategy for individuals with significant assets in IRAs and employer-sponsored retirement plans.
Here are some of the changes that may affect your retirement, tax, and estate planning strategies. All of these provisions were effective January 1, 2020, unless otherwise noted:
Benefits for Retirement Savers
Later RMDs – Individuals born on or after July 1, 1949, can wait until age 72 to take required minimum distributions (RMDs) from traditional IRAs and employer-sponsored retirement plans instead of starting them at age 70½ as required under previous law. This is a boon for individuals who don’t need the withdrawals for living expenses, because it postpones payment of income taxes and gives the account a longer time to pursue tax-deferred growth.
As under previous law, participants may be able to delay taking withdrawals from their current employer’s plan as long as …
Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 21 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
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