LITTLE FALLS, NJ -- 2020 will go down in history as a traumatic and difficult year. More than ever, clients are searching for answers and direction.
We are here to help your situation with the most current information regarding the SECURE ACT that came into effect on January 1, 2020.
Many conversations I am having with my clients are regarding the following topics:
RMD Age Raised to 72 & the Elimination of the Stretch IRA
The age for beginning required minimum distributions (RMDs) was increased from 70 to 72 for all retirement accounts subject to RMDs. This expanded period allows clients to maximize historically low tax rates, distribution planning (including Roth conversions)
With all deaths after December 31, 2019, the stretch IRA is replaced with a 10-year payment rule. The rule requires accounts to be emptied by the end of the tenth year following the year of death.
There are no annual RMDs.
Instead, the only RMD on an inherited IRA is the balance at the end of the 10 years after death. The new 10-year rule applies to beneficiaries of both traditional IRAs and Roth IRAs.
Please contact us by phone or email for more information on the SECURE Act - We're available for more personalized answers by phone or Zoom.