Money In, Money Out: The SECURE Act and Age Restriction Changes

If you’ve been reading up on the SECURE Act, then you are probably well aware of the fact that it eliminated the age restriction on contributions to traditional IRAs. This is a big deal for those Americans planning to work into their 70s by allowing them to put money into their traditional IRAs while they continue working. It should be noted, though, that removal of the age restriction does not remove required minimum distribution (RMD) age requirements. That means that people will still need to begin taking RMDs from a traditional IRA at 72, even as they are still making Continue reading Money In, Money Out: The SECURE Act and Age Restriction Changes

The SECURE Act and Successor Beneficiaries

Now that the SECURE Act has been signed into law, you will want to know how it might affect aspects of your retirement, retirement planning, and your estate. While I’ve talked here about how the SECURE Act will expand retirement benefits for many workers, I haven’t talked much about how the legislation can impact your beneficiaries and their beneficiaries, also known as a successor beneficiary. A successor beneficiary might end up being someone such as the offspring of a beneficiary or one that the original beneficiary listed on proper documentation associated with the inherited account. The old rules–pre-SECURE Act–allowed a Continue reading The SECURE Act and Successor Beneficiaries

Understanding RMDs Under the SECURE Act

As many of you may be aware, the SECURE Act that was recently signed into law made some big changes to retirement for many Americans. Along with opening up opportunities for small businesses to band to together to offer retirement benefits, it raised the age for required minimum distributions (RMDs) to 72. However, that new age for taking RMDs doesn’t go into effect immediately or retroactively. If you turned 70 1/2 in 2019 and thought you could wait a year an a half to take your first RMD, well, that’s not the case. The option to wait until you are Continue reading Understanding RMDs Under the SECURE Act

The SECURE Act Passed. What Does That Mean?

I’ve written about the SECURE (Setting Every Community Up for Retirement Enhancement) Act a number of times over the past year or so. I’m writing now following it’s passing Congress last week as part of the year-end spending bill. Now that President Trump has signed it into law, it goes into effect on January 1, 2020. The legislation is a relatively large overhaul to retirement savings accounts. The two biggest changes are to contributions and required minimum distributions (RMDs). First off, the new law eliminates the age limit for traditional IRA contributions. This means that if you are still working, Continue reading The SECURE Act Passed. What Does That Mean?

Finance Themed Gifts or the Holidays

We’re a little less than 10 days away from Christmas, so chances are, you’ve probably done all your holiday shopping at this point. However, if you’re looking for a few more gift ideas for your children or grandchildren, then maybe you might want to consider something with a focus on finances and money. For example, a book on personal finance can be a great gift that can help people more than they may even realize. There are many such books out there covering various aspects of personal finance, so you may want to stick with bestsellers on this. A personal Continue reading Finance Themed Gifts or the Holidays

Be Sure to Keep Inherited IRAs and Your Own IRAs Separated

If you have more than one IRA, you can aggregate the required minimum distributions (RMDs) and take them from one IRA. Most IRA owners are familiar with this allowance. However, not everyone is aware of that fact that you cannot include inherited IRAs as part of that aggregation. It can be easy to overlook. It should be noted though, that if you inherited multiple IRAs of the same type (Roth vs. traditional) from the same person, you can aggregate the RMDs from those. In short, if you have multiple IRAs, one of which is an inherited IRA, you will need Continue reading Be Sure to Keep Inherited IRAs and Your Own IRAs Separated

Are You Vested?

If you have an employer sponsored retirement plan, then you’re probably familiar with the terms “vested” or “vesting.” These terms mean that the amount that falls into that category is yours and cannot be taken away. Many employer plans have vesting rules and eventually allows the money put into that retirement account to become vested. Complete vesting usually does not happen right away, but rather is gradual as most employer plans have some form of vesting schedule. Often times you have to work a certain number of years at one business or company to become fully vested. Other times, you Continue reading Are You Vested?