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The SECURE" Act was passed- Key Points

Estate Planning Retirement Planning Investment Management

The key points that affect most clients are highlighted below. However, there were numerous other changes that affect business and individual planning. It's a good idea to visit with your financial planner to discuss how you might take advantage of new planning opportunities that are available. 

  • Required minimum distributions from qualified plans are to begin no later than April 1 in the year following the year when a taxpayer turns 72 (instead of 70.5) 
  • Tax deductible contributions to IRAs after 70.5 are now allowed. 
  • Taxpayer may withdraw up to $5,000 penalty-free from qualified plan in the year following the birth or adoption of a child.
  • Employers must include long-term, part-time workers in employer-provided qualified plans.
  • Employer-provided plans that automatically enroll employees may allow elective contributions up to as much as 15% of an employee's salary, (instead of 10%) after the first plan year. 
  • Defined contribution plan (401(k), profit sharing, etc.) and IRA balances must be distributed by the end of the 10th year after the employee or IRA owners dies, with some limited exceptions. 

As always, be sure to consult your personal tax and legal counsel prior to making any decisions based on the information provided above which is intended for education use only.