Posted in Asset Protection,Probate & Guardianship,Tax Law & IRS Defense,Wills, Trusts & Estate Planning
The SECURE Act, or the “Setting Every Community Up for Retirement Enhancement Act”, was recently signed into law on December 20, 2019 without much notice. It took effect on January 1, 2020 and significantly changed the landscape of retirement planning. Here are some of the major changes created by the new law:
By December 2021 or after, savers are expected to begin receiving estimates once a year for how much monthly income their current 401(k) savings might generate in retirement. This may encourage you to increase how much you save.
The change is only effective starting with tax year 2020 contributions made for the year 2020, so people should understand the 70.5 age limit is still in place for traditional IRAs when it comes to contributions made for tax year 2019. Lastly, it is recommended that you proactively meet with your financial advisor or estate planning attorney to discuss the changes to inherited retirement accounts, including where you may have a trust listed as a beneficiary.