Financial Adviser Scott Fanatico with the Financial Services Center talks with Kristen about the top three changes in the new SECURE Act that was signed into law by President Trump on December 20, 2019.
Dec 20 2019 President Trump signed into law the SECURE Act. The top 3 areas of impact are
- Required Minimum Distribution
- Traditional IRA contributions after age 70 1/2
- New 10-year rule for Inherited IRA
Before ACT once you turned 70 1 /2 there was a requirement to take minimum distribution. Typically led to taxes being paid because it is categorized as income.
· Starting 2020 for NEW RMD eligibility the age requirement is 72. Already taking no change
· If you are 70 1 /2 yrs old, have a Traditional IRA and you have “earned Income” Can have 2020 contribution
· Prior to the SECURE Act a non-spouse who inherits an IRA was required to take required minimum distributions, but you could have extended the withdrawals over your lifetime to minimize taxes. This is referred to as a “Stretch IRA”
· No longer. There are few exceptions, called eligible designated beneficiaries, but most will now upon inheriting an IRA the account must be fully distributed by the end of the 10th year. At the end of 10 years the account must be at ZERO balance.
More Stories for you
• Angelo State University ranked Top Texas Public University for Financial Aid
SAN ANGELO, Texas – Angelo State University has been ranked the No. 1 Texas public university for financial aid in a…
• Producers Livestock Auction Report for Wednesday, January 15th
Jody Frey with Producers Livestock Auction Company has the latest local, regional, and national news on sheep and goat…
• Bus Stop Forecast and SAISD Breakfast and Lunch Menus for Wednesday, January 15th
Enjoy the warm temperatures while you can as a cold front is on it way to cool us off. For today, we will have a warm…
• Concho Valley Birthday Roll Call for Wednesday, January 15th
Good morning Concho Valley! It’s time for the Concho Valley Birthday Roll Call! Here are the Concho Valley residents…
• State Representative Drew Darby spoke at the West Texas Rehab Conference Center
SAN ANGELO, TEXAS- State Representative Drew Darby spoke at the West Texas Rehab Conference Center Tuesday afternoon….
• Maximus Nutrition giving free smoothies for donations to help Australian animals
SAN ANGELO, Texas- The Animal Rescue Collective Craft Guild and Maximus Nutrition are teaming up to help orphaned…