SECURE Act Summary
- Expands the ability to run multiple employer plans for plan years beginning after December 31, 2020
- Safe Harbor Rules Simplified for plan years beginning after December 31, 2019
- Long Term Part-time Workers permitted to participate in 401(k) plans, which applies generally to plan years beginning after December 31, 2020
- 3 consecutive 12-month periods the employee has at least 500 hours of service
- Repeal Maximum Age for Making IRA Contributions which applies to contributions made for taxable years beginning after December 31, 2019
- Increase Age for Required Minimum Distributions to 72
- Applies to distributions required to be made after December 31, 2019, with respect to individuals who attain age 7012 after such date
RMDs after Death under the Secure Act
- H.R. 1865 – Sec. 401 Modification of Required Minimum Distribution Rules for Designated Beneficiaries
- Basically, requires all IRAs and Qualified Plans to be distributed within 10 years of death
- The Senate version had a 5 year limit
RMDs after Death under the Secure Act
Exception to 10-year rule for certain beneficiaries:
- Surviving Spouse
- Children under the age of majority (but only until reach age of majority, then 10-year rule)
- Disabled
- Chronically ill
- Another individual who is not more than 10-years younger
Tacked onto last law to keep the government to
No more stretch IRA (including rotes) – only have 10 years. So much money disappear from average Americans.
Going after inheritance tax next? Back to Clinton days where it was 600k and over. Maybe do a roth conversion? Or get rid of all retirement funds like how I have been advocating for for a couple years now – SimplePassiveCashflow.com/qrp
You can contribute to qrp for last year until you file for next year
You can now have annuities in retirement plans – #Lobbist
roth conversions –
Charitable retainer trust – asset income goes to kids then goes to charity
Naming a charity as a beneficiary
Life insurance
A few others
Note: I personally don’t do retirement accounts because I want to take advantage if bonus depreciation – learn more here
