9/1/2020 - Do you feel SECURE with the SECURE ACT?

The SECURE Act, passed earlier this year, brought significant changes to retirement plans and IRAs.  Here's a quick list:

1. You can now contribute to a traditional IRA (up to annual contribution limit or 100% of income - whichever is greater) regardless of age.  This option used to end at age 70 1/2.
2. The age at which you must begin taking distributions from your traditional IRA has  been raised from 70 1/2 to 72.
3. Stretch IRAs have changed. When you inherit a traditional IRA from someone who is not your spouse, you used to be able to have those funds distributed over your life expectancy.  With the passage of the SECURE Act, you now must have it fully withdrawn within 10 years of the original owner's death.
4. Employers can now offer annuities in their 401k plans
5. Employers now can receive more tax credits for starting a 401k plan and/or a SIMPLE IRA plan with automatic enrollment. 

There are more changes and it might be wise to have a review with a trusted adviser to see how you are impacted by the changes.  If you own a business, this is a good time to discuss the benefits of opening a retirement plan for your employees.  And the good news is, it can be pretty SIMPLE to do, even if you are a small business.

Let's talk soon!