SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act, which went into effect this year, created significant changes to retirement savings rules. From later required minimum distributions (RMDs) from IRAs and 401(k)s to accelerated distributions of inherited IRAs, the SECURE Act affects nearly everyone.
One exception is you don’t have to take RMDs from an employer’s retirement plan until you stop working, unless you own at least 5% of the company. You can also contribute to an IRA past your RMD date as long as you have work income to offset the contribution. Previously, you had to stop contributing by age 70 1/2, even if you continued to work.
More workers can contribute to 401(k) plans, too, starting in 2021. Part-time employees who worked at least 500 hours in each of three straight years (and reached age 21 by the end of the period) are eligible to contribute. And 401(k) plan participants should expect new disclosures estimating their lifetime income from their plans, while they may possibly see annuities as new plan options.
The SECURE Act added some other wrinkles, allowing up to $5,000 in penalty-free distributions from IRAs and certain other plans, if amended, within a year of a qualified birth or adoption and up to $10,000 from a 529 plan to pay for student loans.
*The CARES Act suspends the RMD requirement for 2020. Employer sponsored retirement plans may permit through plan amendment.
**Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 1/2, may be subject to an additional 10% IRS tax penalty.
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Active Planning & Investment Solutions and LTM Client Marketing are unrelated companies. This newsletter was created by LTM Client Marketing and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
Avantax affiliated advisors may only conduct business with residents of the states for which they are properly licensed and registered. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC, Investment advisory services offered through Avantax Advisory Services℠, Insurance services offered through an Avantax affiliated insurance agency. Not all products and services are offered by all financial professionals. Products and services listed may only be offered by properly licensed individuals.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.