Steve Starnes Writes in the GRBJ About What To Expect from the SECURE Act
After the Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted during a busy 2019 holiday season, investors may have been left wondering how the new law impacts their financial plans. In a January 2020 Grand Rapids Business Journal piece, Steve Starnes, MBA, CFP® covers some of the most significant changes to expect:
- Updated rules for retirement accounts, including an increased Required Minimum Distribution (RMD) age; no age limits on making IRA contributions; new considerations for qualified charitable distributions (QCDs); penalty-free withdrawals for new parents; and the elimination of stretch IRAs for most non-spouse beneficiaries.
- Expanded 529 college saving plan possibilities, including using distributions to pay student loans and fund apprenticeship programs.
- Business retirement plan improvements, including higher auto-enroll percentages (to encourage more saving); new reporting requirement guidelines; participation for long-term, part-time employees; expanded multiple-employer plan (MEP) possibilities; and other retirement plan incentives for small businesses.
- Additional fixes, such as eliminating an unintended “kiddie tax” and extending a 7.5% threshold for deducting healthcare expenses.
Steve notes: “Rather than expecting things to look and feel easier, many people will find things are simply a little different.” Also, the new rules can get complicated, so families should still work with experienced professionals to optimize their own estate, tax, and financial planning goals. You can read additional insights in Steve’s full article, here.