{"id":485,"date":"2020-02-06T22:35:00","date_gmt":"2020-02-06T22:35:00","guid":{"rendered":"https:\/\/401advisor.com\/?p=485"},"modified":"2021-10-06T22:37:54","modified_gmt":"2021-10-06T22:37:54","slug":"big-changes-to-iras","status":"publish","type":"post","link":"https:\/\/401advisor.com\/?p=485","title":{"rendered":"Big Changes to IRA\u2019s"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">At 401 Advisor, we take great pride in making sure investors are aware of legislation that affects their retirement savings and we try to ensure we keep our clients informed in a timely fashion when changes are made that affect them.&nbsp; Recently a bipartisan bill was passed to help American\u2019s save for retirement and it was signed by President Trump on 20 December 2019.&nbsp; The bill is called Setting Every Community Up for Retirement Enhancement (SECURE) Act and I would like to take a few moments to review some of the provisions that are designed to positively affect our ability to save for retirement.&nbsp; I will list below some of the items that apply to a broader group of people.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Removing maximum age limits on retirement savings, formerly capped at age 70 \u00bd<\/li><li>Raising the required minimum distribution (RMD) age to 72 from 70 1\/2.<\/li><li>Allowing penalty-free withdrawals up to $5,000 from retirement plans for the birth or adoption of a child<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Relaxing rules on employers offering annuities through sponsored retirement plans<\/li><li>Allowing penalty-free withdrawals of up to $10,000 from 529 education-savings plans for the repayment of certain student loans<\/li><li>Revising components of the&nbsp;<a href=\"https:\/\/www.investopedia.com\/taxes\/trumps-tax-reform-plan-explained\/\">Tax Cuts and Jobs Act<\/a>&nbsp;that raised taxes on benefits received by family members of deceased veterans, as well as students and some Native Americans<\/li><li>And to raise an estimated $15.7 billion to pay for these changes: removing the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/stretch-ira.asp\">stretch IRA&nbsp;<\/a>estate-planning strategy that permits non-spouse beneficiaries of IRAs to spread disbursements from the inherited money over their lifetime. The new limit will be within 10 years of the death of the original account holder<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">There are two provisions in here for people approaching retirement to pay close attention to.&nbsp; The first is the new rule allowing you to invest in your IRA until age 72 now.&nbsp; People are living longer and as a result are working longer.&nbsp; Before the new rule, you were prohibited from contributing to your IRA after age 70 \u00bd even if you were still working.&nbsp; Second, the bill changed the required beginning date of your RMD to 72.&nbsp; For the same reason, people are working longer and living longer and delaying the start date of your RMD\u2019s give you a little more time to grow your nest egg before you have to start drawing from it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So if you turn 70 \u00bd this year you&nbsp;<strong><u>DO NOT<\/u><\/strong>&nbsp;have to start taking your distributions this year.&nbsp; Now you can wait until 1 April following the year you turn 72.&nbsp; For example, if you turn 72 in July of 2020, you have until 1 April 2021 to take your first RMD.&nbsp; &nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We hope this information has been informative and as always If you have any further questions, don\u2019t hesitate to call the office and ask one of us directly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jim Kilgore, CFP\u00ae<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">937-434-1790<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At 401 Advisor, we take great pride in making sure investors are aware of legislation that affects their retirement savings and we try to ensure we keep our clients informed in a timely fashion when changes are made that affect them.&nbsp; Recently a bipartisan bill was passed to help American\u2019s save for retirement and it [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-485","post","type-post","status-publish","format-standard","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/401advisor.com\/index.php?rest_route=\/wp\/v2\/posts\/485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/401advisor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/401advisor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/401advisor.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/401advisor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=485"}],"version-history":[{"count":0,"href":"https:\/\/401advisor.com\/index.php?rest_route=\/wp\/v2\/posts\/485\/revisions"}],"wp:attachment":[{"href":"https:\/\/401advisor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/401advisor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/401advisor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}