Is the SECURE Act Really a Backdoor Tax Increase?
When President Trump signed the SECURE Act into law on Dec. 20, 2019, it put into motion some big changes for retirement. For one, the act changed the age at which you’re required to start taking minimum distributions, or RMDs. It was age 70 1/2, but with the SECURE Act, the new age is 72. As a part of that, you can continue to contribute to your IRA at any age as long as you have earned income. Before the act was signed, you were unable to contribute past 70 1/2. Another major change impacts new parents. You can now withdraw up to $5,000 from a 401(k) without triggering penalties. It’s designed to help with new birth or adoption expenses. There is also good news for small businesses. There are provisions that make small businesses eligible for certain tax credits for opening new retirement plans for employees. It’s easier and more cost-effective for small businesses to get together to open 401(k) plans for their employees as a Multiple Employer Plan (MEP) rather than a single business taking on the burden for themselves.
For more coverage on these points and other SECURE Act and retirement issues, be sure to visit our YouTube page. You can find links to our videos at BridgeriverLLC.com or search us on the web. I recently appeared on WWJ Radio and FOX 2 News to talk about the SECURE Act, and we’ve posted those videos online for your reference. In the meantime, there’s one more big change I’d like to discuss: IRA inheritance. Before the SECURE Act, most families could pass on IRAs to their heirs, and their heirs had many options. They could continue the IRA and receive tax-deferred money for as long as they wanted. Going into 2020, this is no longer the case. The IRA must be depleted within 10 years after inheritance (spouses, minors, and disabled beneficiaries are exempt). Odds are, when you inherit a parent’s IRA, you are in your peak earning years. As a result, withdrawing from an IRA may put you in a higher tax bracket. That’s likely what the federal government is counting on. Over the next 10 years, it’s expected this move will generate $15.7 billion in taxes. Families may also have to restrategize IRAs that have been placed into trusts. The language of the SECURE Act may disrupt your intentions. Maybe you are single or have minor children or grandchildren and want to set up a trust so IRA money is dispersed in a very specific way. You may need to restructure the trust to take the 10- year limit into account. One thing to keep in mind is that when heirs take control of the IRA, they don’t have RMDs anymore with this new law. This means money sitting in trusts could now be taxed at trust rates, which are the highest in the land.
While the SECURE Act has disrupted the inheritance plans for many families, there are still strategies you can implement to reduce your tax burden. For instance, you can convert your traditional IRA into a Roth IRA — thus taking on the tax burden now. Then, later, when your heir inherits the Roth IRA, they don’t have to worry about “more taxes.” While they outright withdraw or leave it in the trust, because there is no taxation of most Roth withdrawals, all tax issues are gone. Keep in mind that it still must be depleted in 10 years, however. There are other strategies you can implement as well. If you have concerns or questions about your IRA or how the SECURE Act impacts your retirement or your heirs, please give me a call. I can walk you through everything, answer your questions, and help you determine a possible next step, if necessary. UPCOMING SEMINARS Join us for one of our upcoming seminars discussing the SECURE Act and how to maximize your life savings. Tuesday, Feb. 25 and Thursday, Feb. 27 from 6–8 p.m. at Filippa's. Visit our website for more information and to register at BridgeriverLLC.com.
248.785.3734 1 -Dan Casey
Dan Casey on Fox 2 News discussing the SECURE Act, Jan. 12, 2020.
CREATE YOUR OWN ODYSSEY MYTHICAL ADVENTURES AWAIT IN THE MEDITERRANEAN
One of the oldest stories in Western literature is Homer’s “The Odyssey.” This epic poem tells the story of Odysseus and his long journey home after the Trojan War.
of the nymph Calypso. Historians suspect that Ogygia was Gaudos, now modern-day Gozo, Malta. Gozo is home to the Ġgantija temples, which are older than the Egyptian pyramids. In addition to exploring its archaeological marvels, Gozo’s visitors can also enjoy snorkeling, horseback riding, and other memorable adventures. Ithaca, Greece If you want to chart your own odyssey, make your final stop Odysseus’ home, the island of Ithaca. Covered in lush greenery and quaint villages, Ithaca is a wonderful place to relax at the end of your trip. Visitors can enjoy their morning coffee by a seaside cafe before lounging on a secluded beach for the rest of the day. It’s no wonder why Odysseus fought so hard to get back to Ithaca! With dozens of other islands to explore, the Mediterranean is the perfect place to plan your own odyssey — minus the mythical monsters, of course.
While Odysseus’ travels were fraught with mythical monsters and magic, many of the places he visited are said to be inspired by real islands in the Mediterranean. Even today, travelers flock to these islands looking for peace, adventure, and epic stories of their own. Sicily, Italy One of the most popular stories in “The Odyssey” is the tale of Odysseus rescuing his crew from Polyphemus, a man-eating Cyclops. It’s said that Polyphemus made his home on what is now modern-day Sicily. Fortunately, there are no Cyclopes in Sicily today; there are only cultural festivals, world-class golf courses, and delicious food. Gozo, Malta While Odysseus’ journey was perilous, he did enjoy one peaceful stop. Odysseus spent seven years on the mythical island of Ogygia, home
FROM ZERO TO 300
MEET THE WOMEN WHO PIONEERED MOTOR SPORTS
While Danica Patrick and Courtney Force are well known as modern faces in motor sports, they’re far from the first women to cross the finish line. Since the early 1900s, women have been a constant fixture of automotive racing, including the following three who each left their marks on the sport. Shirley Muldowney Shirley Muldowney is professionally known in the drag racing community as “The First Lady of Drag Racing.” In 1973, she was the first woman to earn a Top Fuel license from the National Hot Rod Association (NHRA) and, despite backlash from competitors, went on to win the NHRA Mello Yello Drag Racing Series an unprecedented three times. Twentieth Century Fox documented her trials and accomplishments in the 1983 biopic “Heart Like a Wheel.” Muldowney famously loathed her own characterization but still lauded the film as required viewing for anyone interested in the sport of drag racing. Janet Guthrie Janet Guthrie had her sights set on the stars from day one. A skilled aerospace engineer, she began her racing career in 1963. After taking home two class wins in the famed 12 Hours of Sebring endurance race, Guthrie became a well-known figure among racing gurus. In 1976, she became the first woman to compete in the NASCAR Cup Series when she finished 15th in the Coca-Cola 600, then called the World 600. To date,
Guthrie’s storied career has landed her in the International Women’s Sports Hall of Fame, the International Motorsports Hall of Fame, and the Automotive Hall of Fame. Dorothy Levitt Dorothy Levitt is known for her driving skills on both land and water,
setting the first water speed record and an early women’s world land speed record. Her motor racing career started slow in 1904 due to illness and various car troubles, but Levitt eventually went on to garner a reputation for her speed and earn the nickname “The Fastest Girl on Earth.” When she wasn’t racing, she spent her time writing. In her book “The Woman and the Car,” Levitt recommended that women carry a small mirror with them for driving in traffic, effectively inventing the rearview mirror five years before it went into production. If you want to learn more about these women and others in motor racing, pick up Todd McCarthy’s book “Fast Women: The Legendary Ladies of Racing.”
STICK A FORK IN IT
HEALTHY EATING HABITS FROM AROUND THE WORLD
In the U.S., there’s nothing we love more than our large meat-and-potatoes dinners, but, according to nutritional experts, American-style meals are expanding our waistlines and leading to chronic medical conditions. Push back against these unhealthy habits by checking out these healthier food traditions from around the globe that your whole family will enjoy. Japan: The Appearance In Japanese culture, an emphasis is placed on the look and color of the meal instead of the portion size. Japanese chefs opt for smaller portions of colorful fresh fruits, vegetables, and fish to create gorgeous, nutrient-packed meals. The result is a dish that is as beautiful as it is nutritious.
added bonus, since portions are small, meals are easily transportable to school and work. India: The Spice Delicious spices comprise the bold flavors in traditional Indian dishes, and many even boast health benefits. Common ingredients like ginger and turmeric can decrease inflammation in the body while curry powder can aid in digestion and strengthen your bones and heart.
their largest meal of the day: lunch. Though it may surprise you, this cultural tradition has surprising
health benefits. Nutritional experts point to making lunch the largest meal of the day as the healthiest dining option, especially to control weight. More calories at lunch keep hunger at bay, which means less afternoon snacking
and fewer daily calories overall, according to the American Journal of Clinical Nutrition. You Try It: Short of packing bigger lunches for your kiddos, try out this style of eating during the weekends. Enjoy large,
You Try It: Using your own spices, have a spice-blending competition. Taste-
test the creations and decide which recipes are good enough for a repeat and which ones will go down in family history as lofty experiments. Who knows? You may just discover your family’s next favorite meal. Mexico: The Lunch Diners in Mexico often step away from the hustle and bustle of their busy days to enjoy
You Try It: Learn the art of making sushi and other
family-style midday meals and smaller dinners with your loved ones on Saturdays and Sundays to reap the nutritional benefits of a large lunch.
Japanese meals with your family. See what creative combinations your family can create, and vote for the best one! As an
For more information and tips on how to transform your eating habits, visit DoSomething.org.
Easy Shrimp Scampi
Inspired by The Blond Cook
• • • • • •
4 tbsp butter 4 tbsp olive oil
1 tbsp minced garlic
1 lb shrimp, peeled and deveined
• • •
1/4 cup lemon juice 8 oz cooked linguine
1/2 tsp oregano
1/2 cup dry white wine
1/4 cup parsley
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.
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.
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INSIDE This Issue How Much Are You Going to Pay? Your Epic Adventure Awaits Fearless Women Who Pioneered Motor Sports Healthy Eating Habits From Around the World Easy Shrimp Scampi Meet the Dog Who Helped Take Down al-Baghdadi
On Oct. 28 last year, President Donald Trump tweeted a photo that quickly went viral. It showed an adorable snapshot of a bright-eyed Belgian Malinois, tongue lolling, still wearing its camo military vest. In the caption, President Trump explained that the pup, Conan, was a national hero who was instrumental in taking down ISIS leader Abu Bakr al-Baghdadi. With four years in special operations forces and roughly 50 missions under his collar, Conan was selected to be part of the team that pursued al-Baghdadi through a network of underground tunnels in northwest Syria, where the terrorist ultimately died. It’s unclear whether Conan was there to track al-Baghdadi or to spot improvised explosive devices that may have been planted on the route, but either way, he performed well. According to NBC News, Conan was injured by some live electrical cables during the mission, but he recovered quickly and was back on duty within
the week. Meanwhile, President Trump invited the brave pup to the White House and tweeted out a doctored photo that showed him awarding Conan a Medal of Honor. President Trump captioned the photo “AMERICAN HERO!” and he’s not alone in his appreciation for the hardworking dogs that have been helping our military since World War II. “To me, they’re the first line of defense,” United States War Dogs Association President Ron Aiello told Vox after the news about Conan came out. “They’re such a great asset to our military today.” Military dogs are put up for adoption after 6–8 years in the service, which means a lucky civilian could take Conan in as early as 2022! Meanwhile, dozens of other smart canine heroes are looking for homes. To learn more about military and other working dog adoptions, visit MissionK9Rescue.org.
THE DOG WHO HELPED TAKE DOWN AL-BAGHDADI
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