Will My Estate Be Affected By the SECURE Act?

In May of 2019, The U.S. House of Representatives passed a bill called the Setting Every Community Up for Retirement Enhancement (SECURE) Act. The bill will now go to the Senate where it will be further debated. If the bill does eventually become law, it would have the following effects on retirement accounts. Although it does have some advantages and tax breaks for taxpayers for their own IRAs and other qualified retirement plan accounts, however much more burdensome tax increases will apply to IRAs inherited from a deceased owner.

  • Part-time workers will have the opportunity to participate in 401(k) plans.
  • People can contribute to their traditional IRAs for as long as they choose.
  • The minimum distribution age for retirement accounts will change from 70 ½ to 72 years old.
  • In certain circumstances, people will be allowed penalty-free withdrawals.
  • People will be required to withdraw from inherited retirement accounts within 10 years.
  • Annuity information and options will be expanded.

If you are wondering how your estate will be impacted by the Secure act, you should get in touch with our experienced attorneys at Marks Elder Law to discuss your situation. This is especially important if you want to pass your IRA account to your children. Under the current law, your designated beneficiary can drawdown the remaining plan benefits over their lifetime. But if the SECURE Act is passed by the Senate and eventually signed by the President, your IRA beneficiaries will have to drawdown their entire inherited interest within 10 years.

Family members inheriting IRAs, 401(k)s, etc. will pay taxes much, much sooner, and the value of your hard-earned IRA savings will be significantly reduced when it's left behind by you to others.

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Our legal team is committed to helping clients plan for their future and protect their interests. We want to use our extensive resources and knowledge of the law to create an estate plan that allows you to have full control of your legacy. We are here to assist with all of your general estate planning needs, and we are prepared to get to work for you today.

Call (412) 500-9488 to set up your free consultation with a member of our law firm.