The Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the SECURE Act, was signed into law on December 20, 2019. The SECURE Act is aimed at increasing access to tax-advantaged accounts and ensuring that older Americans do not outlive their assets.
But, it also contains some changes that create an opportunity for advisors to review strategies with their clients. Let me share a couple with you.
Opportunity #1
The biggest opportunity lies in the change to non-spousal IRA inheritance where the Stretch IRA has been constrained. Simply, a non-spouse is required to liquidate that inherited account within 10 years following the death of the original account holder.
Opportunity #2
The age where Required Minimum Distributions from qualified plans must commence has been pushed back to age 72.
In both of these cases, the qualified money is put in play. In both of these scenarios, the ultimate result is taxable distributions and more money flowing. In both of these situations, those monies can be leveraged into tax-free LTC benefits that can last a lifetime and (in some cases) recover some or all of the taxes paid when distributed.
If you would like further information about any of the OneAmerica Care Solutions strategies, please contact Justin Fox at (844) 658-3725 or via email at justinfox.isp@oneamerica.com . Of course, I can be contacted at kevin.fisher@oneamerica.com or via text or voice at (678) 512-9627
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