Protect Yourself and Your Money Don’t Let Scammers Get You Down
If you’re just now thinking about retirement, or you’re currently retired, you might have heard about the SECURE Act. Signed into law on Dec. 20 of last year and going into effect on Jan. 1, the SECURE Act is meant to increase the options available to retirees for how and when they use their retirement money. The legislation changes a number of regulations, such as repealing the maximum age for traditional IRA contributions, increasing the minimum distribution age for retirement accounts to 72 (up from 70 1/2), and allowing long-term part-time workers to participate in 401(k) plans. While all of these provisions are helpful, one provision in the SECURE Act might mean significantly altering your estate plan: the death of “stretch” retirement accounts. Previously, when someone inherited an IRA or a 401(k), they could stretch out the distributions and tax payments over their lifetime. It made stretch retirement accounts a potentially viable source of income for beneficiaries in an estate plan. Now, however, beneficiaries of stretch retirement accounts must empty the account within 10 years after the original account holder’s death. The motivations for this change are pretty clear. If beneficiaries are required to distribute the money from an inherited retirement account in larger chunks over a shorter period of time, it leads to more tax dollars for the government in the long run. There are a few exceptions to this rule. If you’re planning on leaving a stretch retirement account to a spouse, a minor child, or a beneficiary who is chronically ill or disabled, the 10-year rule does not apply. If you were planning on leaving your beneficiaries an IRA or a 401(k) in any other case, however, you’ll need to rethink that part of your estate plan. OneThing You Should Know About the SECURE Act The Death of the 'Stretch' Retirement Account
According to a recent survey by the American International Group (AIG), a majority of Americans over the age of 65 don’t know much about the myriad financial scams circling the globe. Reports show that not knowing about these scams has proven costly for the 65-plus crowd, who are the most frequently targeted demographic. IS IT LOVE? One common shakedown taking seniors and retirees for a ride is the online romance scam. As part of it, a person poses as a potential date or romantic partner and engages in a fake relationship with the victim. The scam usually starts with an online or web-based dating service and progresses to texting or talking over the phone, but it always stops short of an in-person meeting. Instead, after the scammer has gained the trust of their victim, they’ll claim there’s been some kind of emergency for which they need money fast. The victim usually offers to wire them the money. In many cases, the scammer will continue asking for money for as long as they can get away with it. Then, once the victim figures they’ve been scammed and try to retaliate, the scammers vanish — off to find their next target. DID YOU PAY? Another prevalent rip-off is the invoice scam. Again, AIG reports that about 57% of people aged 65-plus aren’t familiar with this sham. In most cases, the victim receives a phone call or email from a representative of a local company, who says they still owe money for a bill or service. For example, the scammer may tell the victim they owe an overdue $50 for their power bill. If the victim says they’ve already paid, the scammer might respond, “Your payment didn’t process correctly.” The crook’s job is to get the victim to relent and pay up. Then, once they’ve been paid, usually via credit card number or wire transfer, the scammer once again vanishes along with a significant portion of someone’s bank account. Scammers want your money, but if you are aware of today’s hustles, you can better protect yourself and your assets. Luckily, AIG also found that nearly 92% of the 65-plus crowd now ignores phone calls, texts, and emails that request personal information, and 89% of these folks say they avoid clicking links from unknown senders. Be vigilant and remember that if someone calls you and demands personal information over the phone or asks you to wire money, there’s a very good chance it’s a scam.
Don’t let the government take any more money than they have to. Call Phillips & Blow, PC today at (303) 741-2400 for a free consultation.
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Trusts • Probate • Long-Term Care Planning • Elder Law
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