As a principal in Rea & Associates' Mentor office, Wendy Shick, CPA, CFP, works with clients closely to address issues pertaining to individual taxation, charitable planning, IRAs, Roth IRAs, general investing stock basis and options transactions, employer stock transactions including basis and options, and now, the SECURE Act. She is committed to researching client questions to address their specific needs to assist with their wealth management strategies. Click here to learn more about Wendy.
The Low-Down On The Setting Every Community Up For Retirement Enhancement Act
The Setting Every Community Up For Retirement Enhancement (SECURE) Act was passed late last year. Since then, its various provisions have been picked apart and dissected from multiple angles.
In this week’s episode of unsuitable, Wendy Shick, a principal in Rea’s Mentor office and SECURE Act scholar, explains some of the changes that are wrapped up in this legislation and how it will affect you and your employees.
Listen to this episode of unsuitable to learn:
- Required minimum distributions (or RMD) delayed to age 72. With the tax law changes starting in 2018, these types of qualified charitable distributions are even more valuable because the standard deduction amounts were increased and more taxpayers fall under this filing category now.
- New 10-year payout rules after someone passes away – except for spouse beneficiaries. There some exceptions, but most beneficiaries inheriting an IRA will be paid out within 10 years.
- Why Roth conversions may be more important now that the 10-year payout exists.
Learn more about this topic:
- Read: “SECURE Act Ushers In Substantial Retirement Plan Changes”
- Listen: “Episode 230: You Might Need Help Managing Your Employee Benefit Plan If …”
- Read: “What Is Life After Coronavirus? Understanding The Impact During Your Retirement”
NOTE: During the recording of this podcast, Wendy accidentally said that the original age a person was supposed to take a required minimum distribution was 71 and a half. That statement was incorrect. The correct age was 70 and a half. However, Wendy was correct in stating that the required minimum distribution has been delayed to age 72. We apologize for any confusion.