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Retirement Assets impacted by SECURE Act!

Congress attached the SECURE Act to the spending bill and it was signed into law on December 20, 2019.

Below are some important features that will affect IRAs, beginning January 1, 2020:

·         Required Minimum Distributions (RMD) will now begin at age 72 vs. 70 ½; for those who turned 70 ½ in 2019, you are still grandfathered under the old rules and must continue to take your RMDs even if you’re under 72.

·         Even though RMDs don’t begin until age 72, Qualified Charitable Distributions (QCD) can still be made once an IRA owner has reached age 70 ½.

·         Biggest change relates to the elimination of the “stretch IRA”; now, non-spouse beneficiaries must withdraw the entire IRA and ROTH IRA within 10 years of inheritance.  Certain exceptions apply.

·         Existing inherited IRAs will still be grandfathered and can be “stretched” out over the beneficiary’s lifetime.

These new rules could create a significant negative tax impact to beneficiaries if not adequately planned for.   We will have some upcoming conference calls to discuss this in further detail:

·         January 16 at 2pm EST and 5pm EST

·         January 29 at 8am EST, 2pm EST and 5pm EST

Please email Teresa Davis (Teresa.davis@hefren.com) and/or Carlson group (carlsongroup@hefren.com) to register – “call in” information will be provided as we get closer to the dates.

Upcoming workshops/seminars are also in the planning stages for February.

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

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Hefren-Tillotson Inc. is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN® for individuals and businesses. The firm’s wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFS’s. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills. MEMBER SIPC.