Mette, Evans & Woodside

What is the SECURE Act and How Might it Affect my Planning?

Brian J. Hinkle, AttorneyThe SECURE Act is a piece of potentially landmark retirement plan legislation, currently stalled in the U.S. Senate. Three main takeaways are: (1) it raises the age for Required Minimum Distributions from 70 ½ to 72; (2) it removes the age cap for contributions to traditional IRAs; and (3) it effectively eliminates the “Stretch IRA,” which allows non-spouse beneficiaries to “stretch” an inherited IRA over their lifetimes.

As a result, the SECURE Act may have us asking a difficult question if enacted – should I take advantage of the opportunity to accumulate additional pre-tax dollars, while potentially causing significant income tax consequences for my heirs?

Because of this and many other reasons, it is as important as ever to meet with your legal, financial, and tax advisors no less than annually to review your overall planning goals and strategy.