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Live from our new Tempe locationErick Jimenez - Advisor

Galentine's Day 2020Galentine's Day 2020

HOW DOES THE SECURE ACT AFFECT ME?Signed into law by President Trump on December 20,2019, The SECURE Act (Setting Every Community Up forRetirement Enhancement) focuses on improving theretirement opportunities in our nation.Items mentioned in SECURE ActThose 70 ½ and older, still working, can makecontributions to traditional individual retirementaccounts (IRA’s).The required minimum distribution age has beenraised from 70 ½ to 72; HOWEVER, IRA ownersthat turned 70 ½ in 2019 are subject to RMD’s at70 ½ and must use the regular UNIFORM life table(available on IRS.gov).Qualified Charitable Distributions still apply atage 70 ½ regardless·  The potential stretch for a non-spouse-namedbeneficiary has been shortened.Incentivizes small businesses to set up automaticretirement enrollment plans.  A minor beneficiary gets 10 years to liquidate aninherited IRA after they become an adult.See reference below for more pertinentinformation regarding this act.Will This Affect Me?Any IRA owner that passed in 2019 – thebeneficiaries are grandfathered into the old rules. Any IRA owner that passes in 2020 or after will besubject to the new rule. The UNIFORM table will change, but for now, will notbe used until 2021. The SINGLE life table for non-spouse beneficial owners will apply to beneficiariesonly where the IRA owner passed in 2019 and forthose after there is no RMD requirement as the 10year rule will work like the 5 year rule and it just hasto be drained within that period of timeReferences:Sudzius, L., & Lollar, J. (2020). SECURE Act Makes Changes to IRAs, Pensions and Section 529 Plans.LifeLive. A Monthly Newsletter From Advanced Underwritting Consultants, 1-4.

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