Sunday, July 5, 2020

Does the SECURE Act Change Your Retirement Planning?

Promoted Partner Content

The benefits of prudent retirement planning are numerous, and the time you invest in planning will likely be well worth it. Here are three top benefits for those who put a plan in place:

  1. A higher income in retirement
  2. A lower tax bill in retirement (and in the years leading up to retirement)
  3. A less stressful life

New SECURE Act – How It Might Impact You

The SECURE Act of 2019 was passed by Congress in the waning days of 2019 and is now law, effective as of Jan. 1, 2020. The legislation contains 29 provisions and changes that affect both individuals and business owners. SECURE is a lumbering acronym that stands for “Setting Every Community Up for Retirement Enhancement Act of 2019.”  (Clearly the acronym came first, then someone shoe-horned in the description.)

- Advertisement -

Here are several of the most impactful changes for individuals:

  • The age for mandatory Required Minimum Distributions (RMDs) from retirement accounts has been increased to age 72 from age 70 ½ for those who will be turning 70 ½ during 2020 and later.
  • The maximum age for contributing to an Individual Retirement Account (IRA), which used to be 70 ½, has been eliminated for individuals who still have earned income.
  • The Stretch IRA has been eliminated. Now, individuals who inherit an IRA must distribute the IRA assets (and pay tax on them) within 10 years of the original account owner’s death. There are some exceptions, including surviving spouses, chronically ill heirs, disabled heirs and minors.
  • 529 education savings plans get a boost under the new law, as it expands the definition of what types of things can be paid for with a qualified 529 distribution. You can now use 529 funds for homeschooling as well as private elementary, secondary and religious schools. They can also be used to pay up to $10,000 of student loans.

There are many other changes in this new law that are relevant to both individuals and business owners. Here is a link to a summary of the legislation:

- Advertisement -

Want an assessment of your readiness for retirement? Just give us a call or send an email. We’ll be happy to have a look at your situation.

Peter Thoms, CFA
Email: thoms@orioncapitalmgmt.com
Phone: 619.435.1701

- Advertisement -

Jeff Rotherham, CFP®
Email: jeff@orioncapitalmgmt.com
Phone: 619.522.4122

 

 

-----
Do You Value The Coronado Times?
Become a Paid Supporter

Keep it civil. Comments may be removed or closed if they violate Terms of Service.

Advertisement

LETTERS TO THE EDITOR

4th of July Heritage

Submitted by Ch, Col (ret) Gary J. ZiccardiI am a Coronado resident since 2016 who served as Navy Surface Warfare Officer for 4 years,...

Chief Kaye’s Compassion and Kind Actions Stand Out

Submitted by Carolyn RogersonWe never know when a dire emergency will strike our lives. When such a crisis confronted Coronado visitors Mike and Jan...

Congratulations Coronado High School Class of 2020

Submitted by Gene Thomas GomulkaOne should not be surprised that the San Diego County Health Department issued a cease and desist order in regard...

Acting on Our Principles

Submitted by Jim DeBelloWhile the soaring SpaceX launch this weekend lifted our spirits and re-ignited our faith to achieve greatness, we are brought back...

NEW STORIES

Video: Navy Leap Frogs Parachute into Coronado

The Coronado Fourth of July Parade Committee and the Navy Leap Frogs brought some Independence Day thrills to Glorietta Bay with these "on-the-spot" landings...

Marvin Heinze Encourages Us to “Mask Up Coronado”

Coronado City Council member Marvin Heinze speaks about the very contagious coronavirus and how covering our face is one way we can help protect...

Undercover Philanthropist Donna Salof Awarded Key to the City at Feast and Fareway

It’s not every day that you’re given a key to the city by the Mayor of Coronado. Just ask Donna Salof, who turned 70...

Sandcastle Man Shares a Message in His Art

The famous Sandcastle Man of Coronado Beach is using his art to ask people to wear masks, socially distance, and be aware that we...

Nicky Rottens Reopening: New Look, Even Better Burgers

Nicky Rottens has become a staple in the Coronado community for the past nine years. From obtaining a license that allows for all ages...