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Joe Jaspers, CFP®
Vice President, Wealth Management
Carolinas Telco Capital Advisors
Located at Carolinas Telco FCU
9813 South Blvd, Suite 101
Charlotte, NC 28273
Phone: 704-391-5600
Toll Free: 800-622-5305, ext. 2608
Fax: 704-556-1652
Email: joe.jaspers@lpl.com
November/December 2023
The SECURE 2.0 Act May Impact Your Financial Plans
The SECURE Act and SECURE 2.0 Act made several changes that could affect your retirement and estate planning. Understanding what they could mean for your plans and discussing your options with your tax and financial professionals should be a priority. This article summarizes some of the Act's provisions.
Raising the Withdrawal Age
SECURE 2.0 Act raised the age at which you must take the required minimum distributions (RMDs) from qualified retirement accounts, such as a 401(k). Retirees can wait until April 1 of the year after the year in which they turn 73 to begin taking withdrawals, potentially allowing another year for their account balance to grow. In 2033, the age for taking RMDs will increase to 75. In addition, penalties for missing a required withdrawal have been reduced.A 10-year Time Limit
The Act imposes a 10-year limit on distributions from inherited IRAs. Previously, IRA beneficiaries could take RMDs throughout their lifetimes and leave the IRA principal to the next generation. Now, recipients of an inherited IRA must deplete the account within ten years. This rule curtails the ability to transfer wealth from one generation to the next. Spouses, dependent children, and disabled beneficiaries are not affected by the 10-year limit.New Use for Unused Funds
You can convert funds in 529 savings plans not used for education expenses to a Roth IRA for the account beneficiary. A child or grandchild who does not need all the money in the account to pay for education can now get a head start on retirement savings.A Searchable Database
The Act requires the creation of a “lost-and-found” database where families can search for qualified retirement accounts that may have been forgotten by the deceased.Lost funds generally default to the state. The purpose of the database is to help beneficiaries claim the funds.
Get Professional Help
Changes brought about by the SECURE Acts may impact your situation. Getting your legal, tax, and financial professionals to review your current plans can help determine whether you need to make changes.478301
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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Carolinas Telco FCU and Carolinas Telco Capital Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Carolinas Telco Capital Advisors, and may also be employees of Carolinas Telco FCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, Carolinas Telco FCU or Carolinas Telco Capital Advisors. Securities and insurance offered through LPL or its affiliates are:
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