Podcasts about retirement enhancement act

It is tax time and we want to revisit a popular episode! Learn from Host Annette Hines and her favorite guest, law partner, and husband, Mark Worthington about answers to four top questions people ask about tax preparation and tax reporting: Can I claim my adult child as a dependent? If I charge my adult child room and board when they are living with me, is that taxable income to me? And how does this impact their Supplemental Security Income (SSI)? Taxation of special needs trusts and SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 updates. How are caregiver payments such as Adult Family Care (AFC) and Personal Care Attendant (PCA) taxed to the recipient? In relation to #3 on taxation of special needs trusts and the SECURE Act, Mark and Annette discuss the proposed regulations that were released in February 2022. The SECURE Act shifted how distributions could be taken from retirement accounts after the account owner dies.  If you are considering including a retirement account in a special needs trust for a disabled beneficiary or if you are a trustee managing a trust that has an inherited retirement account, you must be talking with a special needs estate planner like Annette or Mark or a tax advisor.  If you or are working with an individual who lives in Massachusetts and need guidance on special needs trusts, you can contact their firm, Special Needs Law Group of Massachusetts, PA on their website: https://specialneeds-law.com/contact/ Since the recording of this episode, Congress signed into law SECURE 2.0 Act in late 2022, and updated how people save money for retirement and withdraw funds from retirement accounts. SECURE 2.0 completely revised the rules for the age at which retirees must take required minimum distributions (RMDs) from their retirement plans.  If your trust has an inherited retirement account or if you are the beneficiary of one directly, you will have to pay attention to the new required minimum distribution (RMD) rules. Finally, an important point that Annette and Mark make is that distribution decisions for a special needs trust to a beneficiary cannot be made based on taxes. Rather these decisions should be made best on what is in the best interest of the beneficiary, how much needs to be saved, the size of the trust, form of the distribution. What types of tax questions do you have? What can Annette or Mark answer for you in future episodes? Leave us a comment or question here: https://specialneedscompanies.com/podcasts

The Setting Every Community Up for Retirement Enhancement Act of 2019, popularly known as the SECURE Act, was signed into law in late 2019.Now called SECURE Act 1.0, it included provisions that raised the requirement for mandatory distributions from retirement accounts and increased access to retirement accounts.But it didn't take long for Congress to enhance the landmark bill that was enacted barely three years ago.Tucked inside a just-passed 4,155-page, $1.7 trillion spending bill are plenty of goodies, including another overhaul of the nation's retirement laws.Dubbed SECURE Act 2.0, the bill enjoys widespread bi-partisan support and builds on SECURE Act 1.0 by strengthening the financial safety net by encouraging Americans to save for retirement.Here are 9 key takeaways.

Wait for it! Who knew that anticipating one person's “Byeee!” could create such compelling podcast drama? We don't want to undersell the exciting insights Host Josh Bretl is sharing about the Secure Act of 2019 on this episode of The Retirement Equals Freedom Podcast. But its special guest Erin Fogarty, an advisor at FSR Wealth, who generates the emotional high points! (You just have to listen really, really closely …)In the meantime, if you're stashing earned income in an IRA-type retirement account, you'll want to know all about the implications of a new and evolving law whose reassuring acronym – SECURE – stands for “Setting Every Community Up for Retirement Enhancement Act.”Without proactive financial planning, you may miss the boat on timing distributions and wind up paying taxes you want to avoid! You'll learn about how The Secure Act of 2019 came to be (and why there's already a 2.0 version under consideration) as well as some of specific changes that may impact how non-spouses who inherit retirement accounts will need to sequence distributions.Co-host Dave Schmidt brings it all together with a vivid illustration of what could happen to retirees or soon-to-be-retirees who don't get help decoding all the fine print! (Please note: No bunnies were harmed in the making of this podcast.)You won't want to miss this opportunity to jot down notes and questions for your retirement planner about this policy that's still a work in progress!This episode was fueled by Cometeer Coffee, both iced and hot!Numbers are growing like crazy, so get onboard by signing up for the show's new weekly email at this link and then come on over and join the conversation at our new private Facebook group, which you can find here (#MoreErin!).Click here to learn more about or listen to previous episodes of The Retirement Equals Freedom Podcast. Don't forget to sign up for the podcast email club while you're there!Click here to explore the services that FSR Wealth Strategies offers and schedule a discovery call with one of the team's CPAs. When it comes to living your best life, it's never too early to get started!

Small businesses that don't have many employees have struggled to offer retirement plans -- often because starting a retirement package from scratch can be expensive. The SECURE Act (Setting Every Community Up for Retirement Enhancement Act of 2019) that became law last year, created a new type of 401(k) called pooled employer plans that allows multiple employers to join one single retirement plan. Conrad Siegel Investment Advisors and the Harrisburg Regional Chamber have partnered for the first pooled plan in the region called Central PA 401(k). Conrad Siegel Partner and Consulting Actuary Trevor Bare and Harrisburg Regional Chamber President and CEO Ryan UngerSupport WITF: https://www.witf.org/support/give-now/See omnystudio.com/listener for privacy information.

At a time when many businesses are desperately trying to bounce back from the financial setbacks of COVID-19, setting up a long term retirement program can seem like the least of your concerns. However, did you know that small businesses that offer 401k plans are eligible for a number of tax credits and financial reimbursements? In this episode, Jon Aidukonis and Gene Marks advise small business owners on how they can take advantage of all the provisions offered by Congress's SECURE (Setting Every Community Up for Retirement Enhancement) Act. Continue reading How Can Your Small Business Benefit from the SECURE Act? at .

Many companies are having very successful years, and at the same time are struggling to find and retain key employees. Could a well-crafted retirement saving plan provide answers to both issues? Tax planning opportunities in the SECURE Act (Setting Every Community Up for Retirement Enhancement Act) may have been overlooked during the Coronavirus pandemic and the subsequent CARES Act. Tax Beat hosts Brooks and Sarah welcome their colleagues David Flinchum, Tax Partner and Leader of the Firm's Qualified Plan Services, and Jeff Gump, Financial Advisor with Cherry Bekaert Wealth Management LLC, to talk about current trends in retirement savings plans. The discussion highlights hot topics, using multiple plans, and how business owners can still lower their 2020 tax bill.   

On today's show, Lou opened things up with the importance of long term care. Planning to protect your estate is key! - Reverse Mortgage. - Secure Act - "Retirement Enhancement Act" - Government Control. - COVID-19 Vaccine News. - Lou also took many great calls from Jersey Shore listeners.

The Setting Every Community Up for Retirement Enhancement Act — signed into law on December 20th, 2019 — was one of the largest overhauls of the American retirement system in years. Provisions in the SECURE Act address age-related investment strategies, open up access to retirement plans for part-time workers, and incentivizes small businesses to offer 401(k) options to employees. Read the full article here: https://www.oflaherty-law.com/learn-about-law/how-the-secure-act-will-affect-your-small-business O'Flaherty Law now serves over 105 counties across Illinois, Iowa, and Indiana. If you have any questions regarding a case or would like to speak to one of our attorneys after watching a #LearnAboutLaw video, give us a call at (630) 324-6666 or send us an email at info@oflaherty-law.com to get in contact with someone from our team. Subscribe to our channel for daily videos dedicated to all things law and leave a comment with any questions about this topic. Find us online for more legal content and to stay connected with our team - Website: https://www.oflaherty-law.com/ - LinkedIn: https://www.linkedin.com/company/oflahertylaw - Instagram: https://www.instagram.com/oflahertylaw - Facebook: https://www.facebook.com/oflahertylawGroup/ This video will discuss how changes under the SECURE Act can improve small businesses' access to retirement plans. We will answer the following questions: What is the SECURE Act?, What monetary incentives does the SECURE Act give small businesses?, How does the SECURE Act increase small business access to retirement plans?, and What other benefits are found in the SECURE Act? **None of the content in this series is intended as paid legal advice.

The SECURE Act was passed about a year ago – that is, the Setting Every Community Up for Retirement Enhancement Act. It was the biggest piece of retirement legislation to be passed in many years and it will undoubtedly have a major effect on how many Americans approach retirement and estate planning. What it means for you depends on your unique situation: Will you benefit from starting RMDs at a later age? Will you have to adjust your estate plan based on a major change in the SECURE Act? Your Thrive Army will discuss these topics in depth in today’s show, plus how we could help you come up with solutions to potential retirement problems.

Have you reviewed your retirement plan recently? Think your 401K is something that can wait until later? Listen about the new law effective as of January 1, 2020, a $1.4 Trillion spending package called the Further Consolidated Appropriations Act of 2020 included the Setting Every Community Up for Retirement Enhancement Act. Learn how these changes can benefit or effect you and your beneficiaries before it’s time to retire. See omnystudio.com/policies/listener for privacy information.

The SECURE Act, or “Setting Every Community Up for Retirement Enhancement Act,” offers several major adjustments to how we save, prepare for and enjoy retirement.  Overall, this legislation will have substantive repercussions for individuals planning for their financial futures.   Please visit www.rhitch.com for more information.   Sources: https://www.congress.gov/bill/116th-congress/house-bill/1994 https://www.kitces.com/blog/secure-act-2019-stretch-ira-rmd-effective-date-mep-auto-enrollment/   Ryan Hitchcock Financial Planner   Direct: 414-253-4611 rhitchcock@highpointcaptialgroup.com     Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is not guarantee of future results.  Securities and investment advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF.    1200 N. Mayfair Rd., Suite 300, Milwaukee, WI 53226. Phone: 414-253-4600.

https://youtu.be/ZW_BQ9ag6VU The SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 (the “Act”), which notably modifies Required Minimum Distribution (RMD) rules, went into effect January 1, 2020. Below are the five things that many people need to know. This is just an overview to get an idea of the overall rules. The previous distribution percentage is as follows: Age % distribution 10           1.4% 20           1.6% 30           1.9% 40           2.3% 50           2.9% 60           4.0% 70           3.6% 80           5.3% 90           8.8% (Section 401, Modifications to Required Minimum Distribution Rules), if you leave a retirement plan (IRA, 401k, 403b) to your descendants (or receive an inherited retirement plan), they will generally no longer be able to take the proceeds over their life expectancies, rather the maximum deferral period will be ten years. Relevant details: This does not apply to leaving the retirement plan to your spouse. This does not apply to those who have already inherited a retirement plan. (opened before 12/31/2019) This does not apply to a beneficiary who is a disabled person, a chronically ill person, a minor child or someone fewer than 10 years younger than the original IRA owner. For minors, the exception only applies until the child reaches the age of majority. At that point, the 10-year Rule kicks in. If a trust is named as a beneficiary of your IRA, the SECURE Act may have further negative consequences. There are two types of IRA trusts, conduit and accumulation.  A conduit trust passes the IRA distributions, if worded correctly, to the IRA beneficiaries.  If you do not want your beneficiaries to receive your entire IRA after ten years, then consider an accumulation trust.   With an accumulation trust, the trust dictates how much the beneficiary will receive.  The downside of the accumulation trust is that the IRA distributions will be taxed at trust tax rates which are the highest income tax rates.  In 2019, the Federal income tax rate reached 37% at only $12,751 of taxable income.  For those needing an accumulation trust, a Roth conversion is essential.  However, you must have sufficient assets in nonretirement accounts to pay the income taxes on the conversion. (Section 114, Increase in Age for Required Beginning Date for Mandatory Distributions) there is a small, yet favorable, change. For those who are not yet 72, RMDs (Required Minimum Distributions) from retirement plans will now begin at age 72 rather than age 70½. QCDs (Qualified Charitable Distributions) continue to have a 70½ start age. (Section 106, Repeal of Maximum Age for Traditional IRA Contributions) there is another small, yet favorable, change. For those over age 70½ who have earned income you can now contribute to an IRA. In the spending bill itself, but not the SECURE Act, the change in the “kiddie tax” (basically tax on unearned income for a child under 18, or under 24 and a full-time student) that was made by the 2018 Tax Cuts and Jobs Act (TCJA) is repealed. Those earnings will again be taxed at the parent's marginal rate as they were previously rather than at trust tax rates. Unrelated to this bill, beginning in 2021 the IRS is changing its life expectancy table for the calculation of RMDs. To use just two examples, previously an 80-year-old using the standard table would have used a life expectancy of 18.7 years but in 2021 it will be 20.2. A 90-year-old will change from 11.4 to 12.2. Not a huge change. There was no change to the 50% tax penalty for failure to take an RMD, which could be very significant if distributions by the designated beneficiaries (DBs) are planned to be taken in the 10thyear but the 12/31 date at the end of year 10 is missed. An unofficial new term for the financial services profession is “Suggested Minimum Distribution (SMD).” The SMD is merely the account value on 12/31 of the prior year divided by the number of years left ...

The Setting Every Community Up for Retirement Enhancement Act or “SECURE” Act that became law on Dec. 20, 2019, includes “many provisions to encourage employers to adopt new (retirement) plans or enhance their current plans and to provide more savings opportunities for employees,” according to Sharon Severson, CPC, consultant with CUESolutions Platinum provider CUNA Mutual Group, Madison, Wisconsin. The act is the largest package of retirement system changes in more than a decade.Severson says she’s most excited about some of the changes to individual retirement accounts that became effective Jan. 1, 2020, and open multiple-employer plans options that will become effective Jan. 1, 2021.“The rules governing IRAs impact most individuals at one time or another during their careers,” Severson explains. “Most of us have heard along the way about the age 70.5 or the required minimum distributions. Now those distributions must begin at age 72 instead of age 70.5 if the individual has not already turned 70.5 by 12/31/2019.” The upshot is that people who want to can save longer—and that’s a big benefit to people who keep working even in retirement. “This may be helpful for credit unions when assisting their members with their questions about IRAs or for credit unions that offer investment services to members,” Severson notes.Multiple-employer plans have been around for a long time, but the act creates the opportunity to form a new kind of MEP. “The Act allows for the formation of a 401(k) plan that includes two or more unrelated employers and this plan type is now being referred to as a ‘PEP’, a pooled employer plan,” Severson says, “and hopefully this will allow smaller employers to obtain an economy of scale that can lower both employer and employee costs.”In the show, Severson says she is glad that the Act expands retirement savings options for certain long-term part-time employees. She also thinks credit unions will also want to learn more about the Act’s changes to the minimum employer contributions for safe harbor plans.The new Act also provides a pathway for plan participants to receive an annual disclosure of projected monthly income from their retirement savings plan. According to Severson, this disclosure has “been on the Department of Labor’s to-do list” since 2006 and will still take some time to implement. The Department of Labor needs to provide a model disclosure and a set of uniform assumptions that can be used to generate these projections “so that if you move from a plan provider to another plan provider, those projections are relatively stable.”“Many people don’t know how much (money) they need” for retirement, she explains in the show. “They’re surprised when they get to retirement that their nest egg isn’t really what they needed after they stopped working. The illustration would help participants make adjustments in that savings plan with this information in hand.” The show also gets into:More details about the new pooled employer plansMore details about what long-term part-time employees may now participate in retirement savings plansMore details about the changes to the rules for employer contributions and other aspects of safe harbor 401(k) plansIncreases in retirement plan penaltiesSuggestions for how to learn more about the SECURE ActMore details about when the various changes take effect

The Setting Every Community Up for Retirement Enhancement Act of 2019, also known as the SECURE Act, which originally passed the House in July, was approved by the Senate on Dec.19, 2019, and signed into law on Dec. 20 by President Donald Trump.  I am not going to dig too deep into the knitty gritty of this bill but I will hit some of the main points that will affect most people. The good news is that almost all the provisions of this bill are meant to make retiring easier for the general public. It has been commonly known for sometime now that many Americans are simply not  prepared for retirement. According to Vanguard, the 2019 median 401(k) balance for those ages 65 and older was just $58,035. This amount doesn't go very far, especially with the rising costs of healthcare and other expenses that become relevant in retirement. This bill should make it a little easier to make our money last. This is becoming even more important as people are starting to live longer.  One of the main highlights is that this bill will move RMD's (Required Minimum Distributions) to age 72 instead of 70 and ½. Let me translate that for you. For most retirement accounts (401(k)'s, IRA's, TSP, ect), you don't pay any taxes until you take money out during retirement. So the longer you keep your money in these accounts, the longer your money can grow without paying taxes. Once you hit the age when RMD's are required, the government requires that you take out a portion of your retirement account balance. They do this to make sure they get their piece of the pie in the form of taxes. This change allows individuals to wait until 72 before taking distributions. This gives people another year and a half to grow their money before paying taxes on any of it.  Another provision of this bill makes  it easier for businesses to offer 401(k)'s to their employees. The government now offers certain tax credits to those businesses that offer a 401(k) or SIMPLE IRA with automatic enrollment. They also made it easier for employers to allow part-time employees to participate in these plans.  The bill touches on many more areas of retirement that I won't mention here. This article is less about explaining every detail and more about introducing you to the main points. There are great online resources for those that would like to dig a little deeper.  This bill is far from a fix-all for all of America's retirement problems,  but it is a step in the right direction. Regardless of what the government does, it is important to remember that it is our responsibility to ensure our success in retirement. There are many great tools that aid in retirement planning, but it is up to us to take advantage of what is available and plan for success. 

The Setting Every Community Up for Retirement Enhancement Act of 2019, also known as the SECURE Act, which originally passed the House in July, was approved by the Senate on Dec.19, 2019, and signed into law on Dec. 20 by President Donald Trump.  I am not going to dig too deep into the knitty gritty of this bill but I will hit some of the main points that will affect most people. The good news is that almost all the provisions of this bill are meant to make retiring easier for the general public. It has been commonly known for sometime now that many Americans are simply not  prepared for retirement. According to Vanguard, the 2019 median 401(k) balance for those ages 65 and older was just $58,035. This amount doesn't go very far, especially with the rising costs of healthcare and other expenses that become relevant in retirement. This bill should make it a little easier to make our money last. This is becoming even more important as people are starting to live longer.  One of the main highlights is that this bill will move RMD's (Required Minimum Distributions) to age 72 instead of 70 and ½. Let me translate that for you. For most retirement accounts ( TSP, 401(k)'s, IRA's ect), you don't pay any taxes until you take money out during retirement. So the longer you keep your money in these accounts, the longer your money can grow without paying taxes. Once you hit the age when RMD's are required, the government requires that you take out a portion of your retirement account balance. They do this to make sure that they get their piece of the pie in the form of taxes. This change allows individuals to wait until 72 before taking distributions. This gives people another year and a half to grow their money before paying taxes on any of it.  Another provision of this bill makes it easier for businesses to offer 401(k)'s to their employees. The government now offers certain tax credits to those businesses that offer a 401(k) or SIMPLE IRA with automatic enrollment. They also made it easier for employers to allow part-time employees to participate in these plans.  The bill touches on many more areas of retirement that I won't mention here. This article is less about explaining every detail and more about introducing you to the main points. There are great online resources for those that would like to dig a little deeper. See links below:  https://www.investopedia.com/what-is-secure-act-how-affect-retirement-4692743 (https://www.investopedia.com/what-is-secure-act-how-affect-retirement-4692743) https://www.marketwatch.com/story/with-president-trumps-signature-the-secure-act-is-passed-here-are-the-most-important-things-to-know-2019-12-21 (https://www.marketwatch.com/story/with-president-trumps-signature-the-secure-act-is-passed-here-are-the-most-important-things-to-know-2019-12-21) This bill is far from a fix-all for all of America's retirement problems, but it is a step in the right direction. Regardless of what the government does, it is important to remember that it is our responsibility to ensure our success in retirement. There are many great tools that aid in retirement planning, but it is up to us to take advantage of what is available and plan for success. 

We continue our conversation about the SECURE Act. Another big piece to this new law is the removal of the stretch IRA. Nick walks us through the things we need to know about this big change.Helpful Information:PFG Website: https://www.pfgprivatewealth.com/Contact: 813-286-7776Email: info@pfgprivatewealth.comFor a transcript of today's show, visit the blog related to this episode at https://www.pfgprivatewealth.com/podcast/Transcript of Today's Show:----more----Mark: Hey, everybody. Welcome into another edition of Retirement Planning Redefined. Thanks for tuning into our podcast about investing, finance and retirement with the guys from PFG Private Wealth. On this episode, just Nick joining me again. That's all right. I like talking to Nick. How are you buddy? Nick: Pretty good. Pretty good. Mark: Hanging in there. Hope you had a good week since the last time we talked. Nick: Yeah, absolutely. This is kind of my favorite time of the year from the standpoint of climate in Florida. Most people are in a pretty good mood overall, including myself. Mark: Well, I'll tell you what, you guys have in the weird weather we are? It's in the 70s in North Carolina. Nick: It's definitely warmer than I prefer, but I know that it's going to kind of cool back down. It's still at least not 90 for four months in a row. I'll take it. Mark: Well, the bad part about the warmer winters is it doesn't get a chance to kill the bugs. I'm showing my old man age there by that, but it's really true. Every year I get older, it's like, man, we do kind of need a cold snap during the winter to kind of kill off some of the stuff that is going to haunt us come spring in summer, right? We don't get rid of some of those bugs. It just makes it that much worse. Hopefully another cold snaps on the way. Nick: You must live near the woods. Mark: Woods or water, man. Woods or water. Nick: There you go. There you go. Mark: You'll get it with that. All right. Well, let's get into our show this week. As I mentioned the last time, we talked about the SECURE Act on our previous podcast. If you haven't subscribed to the show, please do so on Apple, Google or Spotify or whatever platform of choice you'd like. We're all over the place with those. We talked about the increase to the RMD age limit and also the contributions for IRAs with the new SECURE Act. The SECURE Act, as I mentioned before, for those of you who'd just be catching this, that is the most significant piece of legislation the government has passed for our listening audience since really the Pension Protection Act of '06. The SECURE Act is setting every community up for Retirement Enhancement Act. Mark: This was $1.4 trillion budget piece that they kind of snuck it into at the end of December there last year in 2019. This week we're going to talk about a really big component, Nick, and that is the elimination or the altering of what was termed the stretch IRA. Really a lot of people they're saying this is the big negative to this piece of its great for the government because is basically a tax generating... This is the way to create more tax income for the government, but not so great for folks who planned on using this as a generational tool, which is primarily what it was done for to leave wealth to their heirs. Nick: Yeah, absolutely. It's going to have a pretty significant ripple effect from the standpoint of people that were planning to leave their IRAs or maybe had adjusted the way that they were taking from their investments throughout retirement and trying to preserve the IRA to pass. That's going to have a pretty significant impact on that. Plus it's also going to probably cost some people some money in legal fees as they adapt and adjust their estate plans and legal documents to take these sorts of things into account. Mark: Yeah, absolutely. What was the stretch or kind of give us a quick overview and then what they've done to alter it? Nick: Yeah. One of the things I always kind of tell people is from the standpoint of a stretch IRA is that it's really kind of a nickname and it's a concept. A joke that I would kind of make is if somebody passed away and you had inherited funds that were in an IRA and you walk into the bank and you tell the bank teller that you want a stretch IRA, they may look at you cross-eyed. It's not an actual legal name for an account type. The real kind of legal name for the account type is an IRA BDA or a beneficiary designated IRA. Essentially what happens is if you inherit IRA funds or you're listed as a beneficiary on an IRA, there are kind of two classifications for how they look at or at least that's kind of been the rule up to now where it's either spouse or non spouse. Nick: The way that it would work is that if you were to inherit an IRA from a spouse, you could either put those funds into your own IRA, or you could put it into the beneficiary designated IRA. The rules for withdrawals would kind of dovetail from there. For a non spouse, you would also open it as a beneficiary designated IRA. But then the required minimum distributions that would have to be taken from that account would be based upon multiple factors, including your age, the year at which the person passed whether or not they had started taking distributions already, et cetera, et cetera. There are some different rules that went on with that, but in theory you could really stretch that over your entire lifetime by taking the minimum out, and you could also list a beneficiary yourself on the account. Mark: The reason for doing that was to if it was a larger account for tax purposes, right? Nick: Absolutely. Let the account continue to compound, avoid taking out in a lump sum and having to pay taxes on the entire lump sum amount. Because just as a reminder for people, when you inherited a traditional IRA or traditional IRA funds, the full account balance has... Taxes are due, federal taxes. If you live in a state where you pay state income taxes, income taxes are due on that full amount. That could be a pretty significant kind of tax bomb dependent upon what happened, especially if you made a mistake in how you had to take it out. Really this new provision essentially applies to people that are going to inherit these funds starting on January 1st of 2020 moving forward. It is not a retroactive rule. Essentially what it does is it says that you must deplete that account within 10 years. Nick: From what I've seen so far, correct me if I'm wrong, the rules on how you need to take out distributions within those 10 years are not as strict as they used to be. However, that account needs to be depleted within the 10 years. Mark: Right. Yeah. You can do it over like annually obviously, but at the end of 10 years, whatever's left, you got to pull it out and pay the taxes. Nick: But you can defer within those 10 years as well. Mark: Yes. Nick: Again, that could create a pretty big tax bond dependent upon the size of the account. There's a little bit of a flexibility and a little less accounting or paperwork on trying to track those required minimum distributions that would have to come out and the amount on are you doing it correctly, are you calculating it correctly, or some people most likely, and we haven't gotten into it yet with any clients with it being so early in the year, but my assumption is dependent upon the overall situation, people are going to probably take it out equally over the 10 years or try to defer and be a little bit strategic with how they take it out dependent upon maybe there's an impending retirement. Maybe a husband and wife are 60 years old and they both plan on retiring at 65. Nick: Wife's father passes away, leaves them money in the inherited IRA. Our goal is going to be that we're going to take it out post retirement where the income has come down, try to minimize the taxation, and maybe even let that fill in the income hole that they have between 65 and 70 or even 65 and 72 now that the RMD age for their own accounts has bumped up to 72, and they can let their own account kind of accumulate and grow and defer accordingly. It will definitely add another level of strategy and just kind of thinking outside the box a little bit so that we don't have to deal with that, but it's going to be interesting to kind of adjust and adapt to the new rules. Mark: Oh yeah, for sure. Now, for some of those folks listening who are thinking about this now, I do know there are definitely some exceptions I guess if you will, if you want to call them that. There are definitely some pieces to ponder when it comes to some exceptions I guess if you will. Obviously if you're a spouse, that kind of stays the same. This is really kind of targeting the heirs, so like basically if you were leaving this to your kids, but there are also a couple of exceptions there like chronic illness I think is one. There's a couple of others as well. Nick: Yeah, chronic illness is definitely one. If there's a disability, that changes and adds a different set of rules. Those sorts of kind of deeper details are the things or the aspects of the new legislation that everybody's kind of digging through. The attorneys are kind of reading through all the paperwork to make that everybody has a really good grasp and understanding of what those exceptions are and how those funds can be used. Attorneys typically do a good job of interpreting the new rules and laws and coming up with new strategies that allow us to work around them a little bit. Mark: Yeah, no, that's a great point. That's why it's really important to talk with your advisor about how this may affect you if you are planning on leaving. A lot of people do that. Some people are saying, Nick, with the way this whole SECURE Act is working together with the increase to the RMD limit at 72, age of 72, and then with this, a lot of folks, they're kind of looking at it saying it's a tax grab for the government, which of course, I mean, it's always something, but it's one of those deals where if you're living longer and you're putting more money and you don't have to take it out and you choose to leave it to your heirs, like these IRAs or whatever, then that's kind of where this is coming from. Mark: That's kind of how the two pieces of the puzzle in some people's minds are working together in order to generate more tax revenue for the government. It's certainly a piece where you want to talk with your advisor about how you can now be planning more efficiently. Nick: Yeah. As an example with that, just kind of a thinking outside the box and how people may adjust and those sorts of things, if there are substantial funds in the IRA and it's important to you to try to leave money to your beneficiaries, this change in the law may kind of push people to look a little bit more at using a tool like a permanent life insurance policy where they're going to use their own distributions that they're taking from their IRA in retirement, apply some of those distributions towards a life insurance policy that is going to pay out tax free after they pass on and avoid that potential tax bomb that the IRA would leave. Mark: Got you. Nick: There's different things. The fun part, and we can put that in quotes as far as the fun part, but the part that we enjoy the most as far as financial planning and retirement planning, et cetera, is that people are different. There are enough rules, laws, product strategies, et cetera, that there's usually something for everybody. It's just important for us to kind of get to know them, figure out what's most important to them, and adapt and adjust the strategies that we recommend so that it fits within their life and what they're trying to do. This is just another change that we take it into account. We adapt. We adjust. One of the things that we always preface, and this is a really good example of why is... Nick: In these classes that we teach, one of the most common questions that people will ask us is, should I contribute money to a traditional IRA or a traditional 401k or Roth IRA or Roth 401k? They start to understand by the end of the class together that we say it depends for a reason, things change. The only thing that we know for certain is that things will change. This is a great example. We always emphasize building in the ability to be flexible and adapt to whatever changes we do have happen to us so that we aren't all in on one certain strategy that we have no control over whether or not it changes. This is just a perfect example, and it emphasizes even more that it's important to have multiple sources of income in retirement, multiple account types. Nick: That goes for the funds that you're going to use in retirement, as well as the funds that you want to leave in retirement. Mark: Got you. Got you. Okay. That's why we kind of preached that on the show that anytime you hear anything, whether it's our podcast, somebody else's, a different show, a radio show, a television show, you may be hearing some information that kind of peaks up your ears there and kind of gets you to thinking about something. But before you take any action, you should always check out what's going to affect your specific situation by talking with a qualified professional financial advisor like the team at PFG Private Wealth, John and Nick here on the podcast. As always, we're going to sign off this week. Really good information here on the show. Mark: If you've got questions about how the stretch IRA, the removal of that or the changes to that are going to affect you or how the SECURE Act in general is going to affect you, make sure you talk with your advisor or reach out to John and Nick at (813) 286-7776 here in the Tampa Bay area, (813)-286-7776. You can also find this online and subscribe to the podcast via the website pfgprivatewealth.com. That's pfgprivatewealth.com. You can subscribe on Apple, Google, Spotify, iHeart, Stitcher, whatever platform it is that you choose. Nick, my friend, thanks so much for your time this week. I appreciate you. We'll talk more I'm sure about the other components of the SECURE Act and how it's going to affect things in the weeks to come. Nick: Thanks, Mark. Have a good day. Mark: You do the same, and we'll see you next time right here on Retirement Planning Redefined.

Guest: Bob Keebler, CPA/PFS Now that the SECURE Act is in effect, you need to know how this impacts your clients’ financial plans and what you can do to best serve them. In this episode, Bob Keebler, CPA/PFS will discuss practical knowledge and solutions that will help you best serve your clients: What are the key tax and planning strategies to focus on for the families you serve? How can you use a disclaimer for 2019 deaths to use the life expectancy rules? What is the “ghost” rule and when does it apply? How can you use a conduit trust for effective estate planning? Access the related resources from this podcast: H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 Impact of Tax Reform on Planning Toolkit, including charts from Bob Keebler Demonstrate your competency in personal financial planning with the CPA/PFS credential or the PFP certificate program. Don’t miss other SECURE Act podcasts! SECURE Act: Practical Solutions for your Clients (12/17/2019) Eligible Beneficiary Exception (1/10/2020) IRAs payable to trusts (1/17/2020) IRAs payable to conduit trusts (1/24/2020) Mathematics of estate planning for IRAs (1/31/2020) Estate Administration for IRAs and qualified plans (2/7/2020) The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic or Spotify! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device.

On January 1st, 2020, new federal legislation concerning Americans' retirement was enacted. It's called the "Setting Every Community Up for Retirement Enhancement Act," or the SECURE Act for short. In this episode, Mark Wight explains this new act and how it affects your retirement. You'll want to stay updated; don't miss this episode!

Guest: Bob Keebler, CPA/PFS Now that the SECURE Act is in effect, you need to know how this impacts your clients’ financial plans and what you can do to best serve them. In this episode, Bob Keebler, CPA/PFS will discuss practical knowledge and solutions that will help you best serve your clients: What are the post-mortem payout rules? What are the mathematical solutions and strategies to help clients simulate the stretch IRA? Access the related resources from this podcast: H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 Impact of Tax Reform on Planning Toolkit, including charts from Bob Keebler Demonstrate your competency in personal financial planning with the CPA/PFS credential or the PFP certificate program. Don’t miss other SECURE Act podcasts! SECURE Act: Practical Solutions for your Clients (12/17/2019) Eligible Beneficiary Exception (1/10/2020) IRAs payable to trusts (1/17/2020) IRAs payable to conduit trusts (1/24/2020) Mathematics of estate planning for IRAs (1/31/2020) Estate Administration for IRAs and qualified plans (2/7/2020) The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic or Spotify! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device.

As 2019 rounds the bend and gets closer to the finish, so are some legislative acts that we’ve been talking about. Ed Slott, America’s IRA expert, warned us about the likely passage of the SECURE (Setting Every Community Up for Retirement Enhancement) Act in 2020. As of last week, it passed both houses and President Trump signed the bill.

On December 20, 2019, the Setting Every Community Up for Retirement Enhancement Act, or the SECURE Act, became law. While many of us have heard about this in the news, what may not have been immediately apparent is the significant impact this new law could have on your retirement plan and financial goals. Scott Sturgeon, of the Mariner Wealth Advisors practice management team joins us to help simplify the details and explain who is impacted in what way.

WASHINGTON — The Internal Revenue Service has provided relief to financial institutions that were expected to provide required minimum distribution (RMD) statements to IRA owners by January 31, 2020. Notice 2020-6 (PDF) clarifies that if an RMD statement is provided for 2020 to an IRA owner who will turn age 70½ in 2020, the IRS will not consider the statement to be incorrect, but only if the financial institution notifies the IRA owner no later than April 15, 2020, that no RMD is due for 2020. The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) changed the age for which an RMD is first required from age 70½ to 72. Under prior law, financial institutions would have needed to notify IRA owners who attained age 70½ in 2020 about their 2020 RMDs by January 31, 2020. The IRS encourages all financial institutions, in communicating these RMD changes, to remind IRA owners who reached age 70½ in 2019, and have not yet taken their 2019 RMDs, that they are still required to take those distributions by April 1, 2020. www.fender-tax.com

The Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the SECURE Act, aims to improve retirement security for many Americans. Since its passage in December of 2019, it has readily been at the center of retirement plan dialogue. In episode twelve of Revamping Retirement, Mike Webb shares the major provisions and discusses the impact the Act may have on retirement plan sponsors and participants.

Guest: Bob Keebler, CPA/PFS Now that the SECURE Act is in effect, you need to know how this impacts your clients’ financial plans and what you can do to best serve them. In this episode, Bob Keebler, CPA/PFS will discuss practical knowledge and solutions that will help you best serve your clients: What are the requirements for a “safe haven” or conduit trust? How do you avoid a “conduit trust disaster”? When is it useful to use conduit trusts? Access the related resources from this podcast: H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 Impact of Tax Reform on Planning Toolkit, including charts from Bob Keebler Demonstrate your competency in personal financial planning with the CPA/PFS credential or the PFP certificate program. Don’t miss other SECURE Act podcasts! SECURE Act: Practical Solutions for your Clients (12/17/2019) Eligible Beneficiary Exception (1/10/2020) IRAs payable to trusts (1/17/2020) IRAs payable to conduit trusts (1/24/2020) Mathematics of estate planning for IRAs (1/31/2020) Estate Administration for IRAs and qualified plans (2/7/2020) The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic or Spotify! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device.

The SECURE act created quite a buzz in the financial news in the last few weeks. In today’s episode of Grow Money Business, Grant talks all about this new piece of legislation and how it impacts the retirement planning landscape. The Setting Every Community Up for Retirement Enhancement Act of 2019, aka the SECURE act, was signed into law in December 2019. This episode is dedicated to giving you an overview of the SECURE act and Grant’s thoughts on how it will impact your retirement in the long run as well as the short term. [02:15] - Impact on IRAs – Grant talks about how the SECURE act changes the age to start mandatory distribution. [05:59] – Inheritance of an IRA – The secure act made changes to what happens when you inherit an IRA from somebody. Grant talks about what changed and how it affects you. [12:05] – Early withdrawal penalty – Grant talks about a couple of new changes that allow you to get around the early withdrawal penalties in case you needed to take money out of your retirement funds a little early. [15:36] – Safe harbor for lifetime income annuities – Grant explains how the SECURE act has options to take the risks associated with lifetime income annuities off the table. [19:31] – Tax credit for 401K plans – Grant breaks down the numbers how the SECURE act expands the incentive tax credit you get for the first three years of a 401K plan. [26:23] – Withdrawals for disasters – The SECURE act adds the option to withdraw money from retirement funds in the event of a national disaster. Grant explains the way it works. [28:10] – Tax-free withdrawals for educational purposes – With the SECURE act, you can withdraw from retirement funds for qualified educational purposes. Grant explains this option and its limitations. [31:50] – Don’t miss mandatory distributions – Grant explains why it’s important to do the mandatory distributions without a delay and the penalties associated with them.   Resources: The SECURE act: congress.gov Highlights of the SECURE act: bit.ly/2RxAi6L IRA – Individual Retirement Arrangements: irs.gov 401K Plans: irs.gov Early Withdrawals: irs.gov

Visit BIFBites.com to view the question of the month and CFP® Board's "Key Elements of SECURE Act" resource. In this month’s episode of BIF Bites Jerry, Mike, and Brendan discuss how the new SECURE Act will impact both clients and financial advisors. The SECURE (Setting Every Community Up for Retirement Enhancement) Act is the biggest regulation update since the Tax Cuts and Jobs Act. Listen in as our hosts discuss the changes SECURE will have on retirement plans, 529s and more. The BIF Bites podcast covers topics that are important to those seeking CFP® certification and really anyone that wants to better understand the financial services industry in general. Jerry Mee is the Director of Student Support at the Boston Institute of Finance (BIF) and has nearly a decade’s worth of experience in the financial services industry. Mike Long, CFP®, ChFC®, CLU® is the Director of Curriculum for the Boston Institute of Finance (BIF). He has made his career in financial services and financial services education over the past 38 years. Brendan Flaherty, CFP®, CIMA®, is currently a Senior Vice President with Janney Montgomery Scott where he focuses on investment management and financial planning for his clients. He is also the CFP® Program Director for the Boston Institute of Finance.

Guest: Bob Keebler, CPA/PFS Now that the SECURE Act is in effect, you need to know how this impacts your clients’ financial plans and what you can do to best serve them. In this episode, Bob Keebler, CPA/PFS will discuss practical knowledge and solutions that will help you best serve your clients: What is the key issue with trusts under the SECURE Act? What is the “conduit trust disaster”? When is it useful to use conduit trusts? What are rules for beneficiaries and exception beneficiaries? Access the related resources from this podcast: H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 Impact of Tax Reform on Planning Toolkit, including charts from Bob Keebler Demonstrate your competency in personal financial planning with the CPA/PFS credential or the PFP certificate program. Don’t miss other SECURE Act podcasts! SECURE Act: Practical Solutions for your Clients (12/17/2019) Eligible Beneficiary Exception (1/10/2020) IRAs payable to trusts (1/17/2020) IRAs payable to conduit trusts (1/24/2020) Mathematics of estate planning for IRAs (1/31/2020) Estate Administration for IRAs and qualified plans (2/7/2020) The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic or Spotify! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device.

Passed in the last few weeks of 2019, the Setting Every Community Up for Retirement Enhancement Act will has some major changes to the retirement landscape. Eric and Robert cover some of the most important changes to retirees.

Have you reviewed your retirement plan recently? Think your 401K is something that can wait until later? Listen about the new law effective as of January 1, 2020, a $1.4 Trillion spending package called the Further Consolidated Appropriations Act of 2020 included the Setting Every Community Up for Retirement Enhancement Act. Learn how these changes can benefit or effect you and your beneficiaries before it’s time to retire.

In this episode of The Tipping Point, we interview Jordan Cross. Jordan is the Vice President and the Principal of CossPlans. CrossPlans' goal is to assist employers in achieving their retirement and wealth accumulation goals through the use of qualified retirement plans. They accomplish this by helping people understand what the benefits of various types of retirement plans are and what is necessary to implement and operate a successful retirement plan strategy. In this episode, we discussed third-party administration, qualified plans for employers, qualified retirement plans, the Retirement Enhancement Act of 2019, and much more! #Retirement #Retirementplans #Retirementplanstrategy#Wealthaccumulation #Thirdpartyadmin #Qualifiedretirementplan #Plansforemployers   www.tandvllp.com/podcast

Guest: Bob Keebler, CPA/PFS Now that the SECURE Act is in effect, you need to know how this impacts your clients’ financial plans and what you can do to best serve them. In this episode, Bob Keebler, CPA/PFS will discuss practical knowledge and solutions that will help you best serve your clients: What are the 5 eligible beneficiary exceptions under the provisions of the SECURE Act? What solutions using trusts should you analyze to help your clients? What does this mean for your clients in 2020 and beyond? Access the related resources from this podcast: H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 Impact of Tax Reform on Planning Toolkit, including charts from Bob Keebler Demonstrate your competency in personal financial planning with the CPA/PFS credential or the PFP certificate program. Don’t miss other SECURE Act podcasts! SECURE Act: Practical Solutions for your Clients (12/17/2019) Eligible Beneficiary Exception (1/10/2020) IRAs payable to trusts (1/17/2020) IRAs payable to conduit trusts (1/24/2020) Mathematics of estate planning for IRAs (1/31/2020) Estate Administration for IRAs and qualified plans (2/7/2020) The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic or Spotify! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device.

At the end of the year, Congress approved major changes in the way people plan for retirement.  It's called the SECURE (Setting Every Community Up for Retirement Enhancement) Act, and this week Rick & Granger discuss how it could potentially affect you, specifically when it comes to RMD planning.

The SECURE Act and Its Impact on Your Retirement In this episode, John discusses the SECURE (Setting Every Community Up for Retirement Enhancement) Act. It was signed into law on December 19, 2019. He’ll explain how it will affect minimum distribution and the items in your retirement portfolio. John is the author of 5 Ways […] The post Secure Act: This is How to Make the Most of the Minimum Distribution (CoSchedule 86) appeared first on Smallwood Wealth Management.

Chris welcomes Attorney Keats Boyd to talk about the SECURE (Setting Every Community up for Retirement Enhancement) Act, a series of rules that modify how retirement accounts are handled. Some extend the age in which for IRA contributions can be made or requirement minimum distributions must be taken. Others have more adverse effects, that can possibly be minimized with proper planning. Chris, Brian, and Scott from AMR discuss financial news including Brexit, China Tariffs, impeachment and the upcoming election, the Santa Claus Rally and Window Dressing, and Roth IRAs.

Just in time for the holidays, the Setting Every Community Up for Retirement Enhancement Act, or SECURE Act, has been made law, effective January 1, 2020. Joe and Big Al explain what it means for your stretch IRAs, required minimum distributions, retirement savings and more. Plus the fellas answer your questions on self-employed small business retirement plans and paying off the mortgage. Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-253

Guest: Bob Keebler, CPA/PFS The SECURE Act passes as part of a spending package and is expected to be signed into law by the President before the end of the year to avoid a government shutdown. In this episode, Bob Keebler, CPA/PFS will discuss practical knowledge and solutions that will help you best serve your clients: What are the important provisions of the SECURE Act that you need to know? What are the most urgent issues to address with your clients? What other solutions should you analyze to help your clients? What new “traps” should you look out for? What does this mean for your clients in 2020 and beyond? Access the related resources from this podcast: H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 Impact of Tax Reform on Planning Toolkit, including charts from Bob Keebler Demonstrate your competency in personal financial planning with the CPA/PFS credential or the PFP certificate program. The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic or Spotify! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device.

Guest: Bob Keebler, CPA/PFS & David Cahoone, JD, LLM Category: Technical In this episode, Bob Keebler, CPA/PFS discusses the planning strategies related to the proposed SECURE Act using charitable remainder trusts (CRTs) as beneficiaries as IRAs to simulate a stretch IRA. He answers the questions: When the SECURE Act becomes law, what happens to the stretch IRA as we know it today? If the stretch IRA is gone for most descendants, is there any hope for continued life stretch-out? Is a stretch-out only a tax deferral strategy or is there more to it? How would a CRT be structured to receive retirement benefits? What are the tax consequences of naming a CRT of a retirement plan beneficiary? And more! Access the related resources from this podcast: Impact of Tax Reform on Planning Toolkit H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019 The episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice and by the CPA/PFS Credential program which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community and gain access to valuable member-only benefits. Don’t miss an episode – subscribe to our podcast series on iTunes or Pod-o-Matic! Just search for “AICPA Personal Financial Planning” on any Apple, Android or Windows device from your web browser or favorite podcast app.

There is an important piece of legislation that has passed the House of Representatives and is being considered in the Senate. It's technically known as H.R. 1994 "Setting Every Community Up for Retirement Enhancement Act of 2019." It has some changes that are potentially helpful to you; and some that may destroy the value of your qualified accounts. Joshua

In Mathew 16, Jesus confronted the Pharisees and Sadducees when they tried to test Him, saying that they knew how to interpret a red sky but couldn't interpret the signs of the times. This week, Hans and Robby talk about the fear and confusion of retirement taxes. People tend to worry when their tax return is smaller than expected, while in reality, this is no cause for fear because the tax rates holistically have gone down. It's important to know the difference between retirement policy and politics so you can plan financially and live well.   Hans recently participated in a webinar with IRA expert Ed Slott and discussed the S.E.C.U.R.E. Act that recently passed in the House of Representatives. Hans says it's crucial for financial planners to pay attention to new tax rates and plan ahead for their clients' best interests. A single person can have an income up to $40,000 and a couple can file jointly with an income up to $78,950 to qualify for a 12% income tax. The next bracket allows a joint income up to $168,400 and a single income up to $84,200 for a 22% income tax. Robby talks about how a lot of families will find themselves in those brackets, and, instead of being afraid, should save and think about the future. You can generate more income by converting traditional IRAs or 401ks to a Roth IRA. This will allow you to pay taxes on the money going into the Roth in the spring and take advantage of the 12%, 22%, and 24% brackets. Robby says it wasn't that long ago when the tax rate was 30% or 34%, and right now, with the low rates, there's an opportunity to save and manage your money shrewdly.    Most people had a pension and savings to prepare for retirement 30 years ago. Now pensions are less common and 401ks, tax deferred savings plans, and IRAs are popular. These accounts give the impression of big balances, but that money hasn't been taxed yet. Because of this, there's not as much money in those accounts as people assume. Converting this money to a Roth over several years will minimize your taxes at a lower rate. Even though you are increasing your current taxes,  you'll be saving money down the line and creating a stable retirement income. Up next, Hans and Robby talk about the S.E.C.U.R.E. Act currently being processed in the Senate. The S.E.C.U.R.E. Act stands for Setting Every Community Up for Retirement Enhancement Act 2019. The bill is intended to help people better prepare for retirement by getting them to use their IRAs.   Because of this, the S.E.C.U.R.E. Act has changed the policy concerning beneficiaries. If a spouse is named beneficiary, they'll inherit the money in an IRA with no change. But if children are named beneficiaries, they can only stretch IRA taxes over ten years instead of their life span. Hans says if the goal is to leave as much money as possible to your heir, you should meet with a retirement advisor to help minimize potential taxes. It could be that life insurance is a better alternative to an IRA. The point is, tax bracket management is the key to secure retirement planning. Don't forget to get your copy of "The Complete Cardinal Guide to Planning for and Living in Retirement" on Amazon or on CardinalGuide.com for free! You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com.

Maybe you’ve heard of it, but do you know how the SECURE Act could impact your retirement plans? Or what about the retirement options offered by your employer? Here are eight of the 29 provisions in the act to keep an eye on. Full show notes: https://retirementelevatedpodcast.com/podcast/8-provisions-from-the-secure-act-of-2019/ ----more---- Thing's You'll Learn Along Today's Journey 1:27 SECURE Act This stands for Securing Every Community Up for Retirement Enhancement Act. This is the first major retirement legislation since 2006. There are 29 changes, but we will talk about eight of the bigger ones. 2:05 1 - Increase small employer access to retirement plans 90% of businesses have 20 or less employees and thus the majority of employees in the US are employed by small businesses. In the past you could use SEP IRAs, but the SECURE Act will create even more opportunities for employers to supply retirement benefits to employees. 3:24 2 - Increase annuity options inside retirement plans Open market 401(k)s have not had annuity options as readily accessible in the past. This can be a good or bad change, depending on if the strategies are used properly. 4:11 3 - Increase RMD age Sean shares a client example of someone wondering what to do when they reach the age of required minimum distributions. The new rule would increase the RMD age from 70.5 to 72. This could open up a larger window of opportunity for people to create a solid financial plan and gives folks more avenues for various investment strategies. 5:55 4 - Removal of age limitation on IRA contributions You have been able to contribute to a Roth IRA (as long as you were working) without any age restrictions. But this hasn’t been the case with traditional IRAs. Under the new rule, age restrictions would be lifted to more closely reflect the Roth rules. 6:31 5 - Tax credits for automatic enrollment This will encourage employers to build automatic enrollment into their retirement plans. Automatic enrollment will also offset some of the costs through the tax credit. 7:39 6 - Penalty-free distributions for the birth or adoption of a child Under the Act, you could take out $5,000 from your retirement following the birth or adoption of a child. This allows you to avoid the 10% penalty, but you still pay the taxes. The distribution needs to happen within one year of the child being born or adopted. 8:40 7 - Lifetime income disclosure for defined contribution plans A 401(k) plan is an example of a defined contribution plan. This rule would require employers to send a notice every year showing the expected growth of your money and your estimated monthly income in retirement. 9:31 8 - Removal of the stretch IRA provisions The stretch IRA is one of the most widely used planning tools when it comes to transitioning assets to the next generation, so this could be a big deal. This is viewed as a tax-generating provision, requiring most beneficiaries to distribute the account over a ten-year period.

Recently passed through the House, the SECURE Act has a lot of new retirement implications. You'll want to hear the next two episodes of the podcast as we break down the act in a two-part series. We'll cover what this might mean for your retirement plan.   Confidence Corner 1:34 All about the SECURE Act of 2019 First major retirement legislation since 2006. SECURE Act stands for “Setting Every Community Up for Retirement Enhancement” Act. Passed through the House but still has to go through the Senate. 4:42 Small business retirement plans Title 1, Section 101 will help small business employers to increase access to retirement plans. The majority of Americans are employed by small business owners. It will give the employer tax benefits. For small companies, 401(k) costs are big, so this will help incentivize small business owners. To do this, businesses will be lumped together potentially to the share the cost of a retirement plan. 7:56 Increased annuity options inside retirement plans A lot of 401(k)s allow annuitization options when you retire in order to turn your 401(k) into a pension. This will be a required option inside the 401(k)s to provide a guaranteed number. 10:29 Increasing the RMD age This is what is gaining the most publicity. Right now, you have to take required monthly distributions at age 70 and a half. Under this bill, that will increase to 72 years old. People are living longer, so this may help spread the distributions out. For a lot of people, Nathan doesn't feel like this will make enough of a difference. If people need to take these distributions earlier anyway, then it's not as big of a benefit. 15:01 Removing age limitations on IRA contributions Right now, you cannot contribute to an IRA after age 70 and a half due to RMDs. If you are still working, you can continue to contribute to a 401(k) or a Roth.   Additional Resources: Schedule A Meeting Download Your Retirement Rescue Toolkit - Learn More About Our Firm Your Guide: Nathan O'Bryant - Contact

This week, the podcast takes a look at the first major retirement legislation to move through Congress in more than a decade According to some policy folks, it is the most significant retirement legislation since the passage of the Pension Protection Act (PPA) in 2006. That’s hard to debate, but only, as mentioned, because it’s the only retirement legislation to come along since PPA was passed. Several much more pressing (“significant”) retirement matters need to be addressed by lawmakers and policymakers. One is the looming implosion of multi-employer pension plans covering more than 10 million workers and retirees. These were created under collective bargaining agreements and jointly funded by groups of employers in industries like construction, trucking, mining and food retailing. Congress has been working on a solution, and it was good to see a bill advance out of the House Education & Labor Committee this week.Another big issue is weakened fiduciary protection for retirement savers. The Securities and Exchange Commission approved its Regulation Best Interest regulation this month; as expected, it is far weaker than the now-deceased fiduciary rule implemented by the Obama-era Department of Labor. The SEC rule relies on disclosure - here’s 100 pages of fine print, and you’re on your own.And of course the other enormous, looming issue is Social Security reform - if nothing is done by 2035, we’re all looking at a haircut on benefits of about 25 percent.But I digress - back to the legislation at hand - the Setting Every Community Up for Retirement Enhancement Act of 2019 - SECURE for short. The bill recently passed the House of Representatives by a lop-sided, bipartisan margin, and it is under consideration by the Senate now. You can find more in my most recent Reuters column, but in brief, SECURE contains a laundry list of provisions that the financial services industry has wanted passed for a long time. It focuses in four key areas:Increasing access to employer-sponsored workplace savings plans';Getting people in these plans to save more;Add features to workplace plans that get people to focus on how their savings translate to income in retirementIncrease financial literacy on how savings translate into spending and income in retirement.One of the key provisions make it possible for employers to band together to offer a single workplace retirement plan to workers. This typically would be small employers. I’ve been skeptical that this will put much of a dent in the country’s workplace coverage gap. For one thing, it’s not at all clear many plan providers will jump into this market to offer plans. And more-competitive low-cost options for small employers have surfaced since this idea was first hatched some years ago. SECURE also would make it much easier for employers to add the option of converting part of your 401k savings to an annuity at the point of retirement. The idea here is to help assure people of a higher amount of guaranteed income in retirement. Then there’s some small stuff. For example, recognizing that more people are working longer, the age when required minimum distributions must begin would increase from 70.5 to 72. And the maximum age for contributing to an IRA (also 70.5) would be repealed. (Insert yawn here.)But I wanted to get a reasoned defense of the SECURE Act for the podcast. For that, I turned to Melissa Kahn, managing director of retirement policy for the defined contribution team at State Street Global Advisors - a very large company that manages nearly $3 trillion in assets worldwide. Melissa is an attorney with extensive experience in the world of employee benefits and regulation. Before joining State Street, she worked as a consultant in the industry and also for more than a decade working in the life insurance business. She wrote an excellent article recently that does a great job distilling what’s in the SECURE Act.Subscribe during the Spring Sale!This podcast is part of the newsletter I distribute to subscribers to the RetirementRevised.com newsletter. It’s a listener-supported endeavor, and I hope you’ll consider subscribing. Along with the podcast, you’ll get access to the series of retirement guides that I’m publishing right now - brief, downloadable resources to help you understand challenges like optimizing Social Security benefits, transitioning to Medicare from other types of insurance and how to hire a financial adviser. Each guide is paired with a podcast interview with a top expert in the field. Right now, you can take advantage of the Spring sale - half off your first year. Check it out using the “subscribe now” link at the bottom of this page, or visit the website for more details.If you’re listening on Apple Podcasts or Stitcher, please leave a review and comment to let me know what you think. You’ll be helping me get more visibility for the show. If you like what you see here, I hope you’ll consider subscribing, too. This is a public episode. Get access to private episodes at retirementrevised.substack.com/subscribe

On May 23rd, an Act dubbed S.E.C.U.R.E., Setting Every Community Up for Retirement Enhancement Act, passed the House of Representatives. A nearly identical bill, the Retirement Enhancement Securities Act (RESA), is currently in front of the Senate. The eventual legislation will likely have aspects of both. Whatever the nuances in the ultimate Act, the legislation is the most significant change in retirement-related laws since 2006. --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app

On May 23rd, an Act dubbed S.E.C.U.R.E., Setting Every Community Up for Retirement Enhancement Act, passed the House of Representatives. A nearly identical bill, the Retirement Enhancement Securities Act (RESA), is currently in front of the Senate. The eventual legislation will likely have aspects of both. Whatever the nuances in the ultimate Act, the legislation is the most significant change in retirement-related laws since 2006. --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app

This week's episode includes some reader questions, and a review of the The Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act). The SECURE Act has passed the House of Representatives, and a similar bill is working in the Senate. For more, visit the show notes at https://www.bigpictureretirement.com/5-things-to-know-about-the-secure-act-of-2019