We’re Half Way Through 2020…Can You Handle Another Half?

Wow, 2020 has been a wild ride so far. We started the year off with what seemed like a strong stock market, solid economy, and no fears of COVID-19. That quickly changed less than three months into the year as much of the country came to a standstill after Coronavirus reached our shores. It’s fair to say it’s been a bit of a rough ride since then. It’s also hard to say what the rest of the year will bring. However, 2020 has also brought some big changes to retirement saving and planning. First off, the SECURE Act was signed Continue reading We’re Half Way Through 2020…Can You Handle Another Half?

The Stretch IRA is Dead. Does That Mean More Freedom?

If you’ve been staying on top of retirement news over the past 12 months, then you’ve probably read about the passage of the SECURE Act and it’s termination of the stretch IRA as an estate planning tool. Just a quick refresher, but a stretch IRA was an IRA inherited by a beneficiary in which the beneficiary then took required minimum distributions (RMDs) according to his/her life expectancy and not that of the original IRA owner. If the IRA was inherited by a young beneficiary, that meant the funds could grow, possibly over decades, before the inheriting beneficiary reaches 72 and Continue reading The Stretch IRA is Dead. Does That Mean More Freedom?

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

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?

Will You Really Need RMDs at 70 1/2?

I’ve written about the SECURE Act here many times in recent months as it is legislation that could open up a lot of retirement saving opportunities for a wide swath of Americans. Officially titled as “The Setting Every Community Up for Retirement Enhancement Act of 2019,” this bill could allow for small businesses to band together to offer retirement savings plan benefits, increase the age for required minimum distributions (RMDs), and allow IRA and 401(k) plan holders to purchase annuities with money in the accounts. While all those a good things, this post is really going to focus on the Continue reading Will You Really Need RMDs at 70 1/2?