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December 27, 2019
Happy New Year to you and your family!
A special gift, delivered just before Christmas, is the governmental treat called the “SECURE Act”. Who could argue with the acronym: Setting Every Community Up for Retirement Enhancement?
How will this affect all of us? I won’t drag you through the 29 separate provisions, but it may have some relevance to those who are self-directing their retirement plans at NuView.
First, the good.
Required Minimum Distribution (RMD) age moves from age 70.5 to 72. If you have an IRA other than a Roth, we must start taking RMDs once we reach the prescribed age. This act allows us to hold on to those funds a year and one-half longer.
As long as we have qualified earned income, we can now continue to contribute to our IRA at any age, instead of contributions ending at age 70.5. (You have always had the ability to continue to contribute to a Roth IRA, regardless of age).
Now, the not so good.
The ability for beneficiaries to take a distribution of an inherited IRA over their lifetimes has been trimmed to a maximum of ten years. Exceptions are made for certain beneficiaries, including spouses and the chronically ill or disabled. Often called a stretch IRA, this will constrain a popular estate planning tool that was particularly attractive for Roth IRA beneficiaries.
Congress realizes that Americans as a whole are not saving and investing sufficiently for retirement, and so provides the relief of letting us work longer and contributing to our old age! As far as fixing Social Security, our federal legislators have no appetite to tackle this anytime soon.
As the CEO of your retirement plan, I wish you the most prosperous 2020 possible. Watch for new services from NuView Trust in the new year, and make it a point to attend our events and webinars that we are planning; we enjoy bringing new subjects and speakers to you.
Glen Mather, NuView CEO