The SECURE Act, An Intro
Significant changes were recently made to the rules pertaining to distributions from qualified plans such as IRAs, 403b, 401k, and Roth IRAs. The Setting Every Community Up for Retirement (SECURE) Act went into effect 1/1/2020.
This law provides that required minimum distributions from qualified retirement plans can be delayed until age 72, for people who turned 70.5 after 1/1/20. However, non-spouse beneficiaries (children and grandchildren) of qualified plans must deplete (and pay income taxes on) the inherited accounts within 10 years of the death of the IRA holder. There are many other changes made by the SECURE Act but these are the two major provisions.
Park Place Financial will be holding a workshop in late April/early May at the Hess Conference Center in the Galleria concerning the SECURE Act. Many people will need to revisit their retirement and estate plans as a result of this Act. We want our clients and prospective clients to make well-informed decisions concerning the tax ramifications of retirement income planning, and this workshop is part of our continued effort to do so. We will keep you posted.