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.
Schedule a Free Consultation Today
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 412-421-8944 to set up your free consultation
with a member of our law firm.