The SECURE ACT: Key to Better Retirement or Future Nightmare?
At the end of 2018, the United States faced a government shutdown. Fortunately, an emergency spending bill was passed to keep the lights on. But hidden within this spending bill was the Setting Every Community Up for Retirement Enhancement (SECURE) Act. This bipartisan legislation went into effect on Jan. 1, 2020 and is meant to strengthen retirement security across the U.S., but will it? This month, we’re looking at three major retirement changes introduced by the SECURE Act. Meet the New Required Minimum Distribution Age Prior to the SECURE Act, qualified account holders had to start taking required minimum distributions (RMDs) from their retirement accounts when they turned 70 1/2. Failure to do this resulted in harsh penalties. As of Jan. 1, 2020, the RMD age rose to 72. This change is to accommodate longer life expectancies. If you turned 70 1/2 in or before 2019, you
will be expected to take RMDs normally in 2020. Failure to do so may result in a 50% penalty of the RMD. Everyone else can wait to start taking RMDs until age 72. Hello, Annuities Employers can now offer their employees annuities as investment options within 401(k) plans. The idea is to provide employees with guaranteed lifetime income options. However, many experts warn of the hefty fees and penalties that come with using annuities improperly. We encourage employees to work with a financial planner to assess annuity options in their employer- provided 401(k) plans before signing up.
could “stretch” the inherited IRA, taking out smaller distributions to enjoy a lifetime of income. The SECURE Act does away with this benefit. Any IRA inherited by nonspousal beneficiaries after Dec. 31, 2019 must
see all assets withdrawn in 10 years. Being required to take larger distributions means beneficiaries face higher taxes and higher federal income brackets. These are just a few ways the SECURE Act changes retirement in the United States. This new legislation introduced 29 new provisions or rule changes. Do you know if these changes will impact your retirement plan? We can help you find out! Call 904-232-8760 to discuss any changes you need to make in order to keep your retirement plan on the right track.
Goodbye, Stretch IRAs This is one of the most troubling
elements of the SECURE Act. Before this new legislation, if you left an IRA account to a beneficiary, your beneficiary
SUDOKU
Make date night simple with this easy shrimp scampi recipe.
INGREDIENTS
• 4 tbsp butter • 4 tbsp olive oil • 1 tbsp minced garlic • 1 lb shrimp, peeled and deveined • 1/2 tsp oregano • 1/2 cup dry white wine
• 1/4 cup lemon juice • 8 oz cooked linguine • 1/4 cup parsley
DIRECTIONS
1. In a skillet over medium heat, melt 2 tbsp of butter with 2 tbsp of olive oil. Add garlic and cook for 2 minutes. 2. Add shrimp and oregano, stirring frequently until shrimp is pink. Remove shrimp from skillet. 3. Add wine and lemon juice to skillet and bring the mixture to a boil.
4. Stir in remaining butter and olive oil and cook until butter is melted. 5. Add cooked shrimp to skillet and cook for 1 minute, stirring occasionally. 6. In a serving bowl, top cooked linguine with shrimp mixture. Garnish with parsley and serve.
Solution on Page 4
Inspired by The Blond Cook
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