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Southlake Retirement Planning – The Secure Act Overview

The Secure Act Overview in 2020

Retirement Planning Changes to Know
for Southlake Retirees

The Secure Act Impact    Southlake Retirement Plan Review

On December 20, 2019 – while you were preparing for Christmas – The Secure Act was signed into law.

SECURE stands for Setting Every Community Up for Retirement Enhancement.


What is The Secure Act?

The Setting Every Community Up for Retirement Enhancement (SECURE) Act is a bipartisan bill designed to aid Americans’ ability to save for retirement. The bill seeks to improve the country’s retirement prospects.

The bill passed the U.S. House of Representatives in a 417-3 vote in July 2019. And was then passed by the Senate, as part of the Dec. 19, 2019, spending and tax-extension bills. It was signed into law by President Donald Trump on Dec. 20, 2019.
SECURE Act, Investopedia


Financial Planning Impact of The Secure Act?


Secure Act Impact

Some of the changes will generate questions –
and will likely require professional financial planning advice.
  •  The Secure Act now allows annuities to be put in 401k plans – Many annuities offer guaranteed income, which is attractive, but they can be very complex investments and it would be wise to consult with an investment advisor before making this choice
  • The stretch benefit of IRA’s has been eliminated for most non-spousal beneficiaries.
  • This rule goes into effect on January 1, 2020 – but does not affect anyone who inherited IRAs and started taking required minimum distributions before to this date.
  • Prior to the passage of this act, many beneficiaries could “stretch” the benefits of their inherited IRA over their lifetime – meaning they could take minimum annual distributions based on their age.
  • Now, unless you are a spouse, most IRA’s will have to be paid out within 10 years.
  • This could have a big income tax impact on someone in their peak earning years.
  • It also has impact on young beneficiaries who might not otherwise come across a large sum of money in a relatively short period of time.

Some Helpful Secure Act Provisions Include:

  • Small businesses will receive tax incentives to set up retirement plans with automatic enrollment.
  • Alternatively, employers can pool together to share access to retirement plans.

Other Secure Act Improvements Include:

    • The age for required minimum distributions is increased from 70.5 to 72.

    • The maximum age for making contributions to traditional IRAs was removed.



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