The SECURE Act

The SECURE Act - What you actually need to know. . .

This act intends to improve retirement security for Americans, with many new provisions for those saving for retirement. Of course, SECURE is actually an acronym: Setting Every Community Up for Retirement Enhancement. This act will affect most Americans eventually, and it is important that you understand its implications for your retirement. Here are four things you should know about the SECURE Act:

1. 1. BE AWARE OF CHANGES TO THE AGE REQUIREMENTS FOR DISTRIBUTIONS: Required Minimum Distributions can now wait to be taken until the age of 72. This is beneficial for you, as this gives you more time for tax planning and charitable giving planning. Our advisors can conduct comprehensive tax analyses and can build financial plans that help enable to you live and give the life you want.
   2. YOU MAY WANT TO RECONSIDER HOW YOU PASS ON YOUR IRA'S TO YOUR CHILDREN & GRANDCHILDREN. In the past non-spousal beneficiaries could "stretch" out the distribution of an Inherited IRA. Under the SECURE Act, Stretch IRA's are not being done away with, but the non-spousal beneficiaries who inherit IRAs can no longer leave that money in tax-deferred status indefinitely. Now, you must deplete the IRA within 10 years—albeit with a few exceptions. Talk to a Creekmur Wealth Advisor for more details on the stretch IRA changes.
   3. FOR SMALL BUSINESS OWNERS IT'S NOW EASIER TO SET UP A 401(k). The SECURE Act made a number of provisions for small businesses making it easier and less expensive to set up retirement plans. If you own a business it might be time to consider the benefits of a retirement plan for yourself and your employees. Our Creekmur Wealth Business Solutions team is ready and waiting to update you on these new changes. 
   4. AGE RESTRICTIONS ARE LIFTED FOR IRA CONTRIBUTIONS. Lastly, there no longer age limitations on contributing to a traditional IRA. Anyone who works past the age of their 71^st birthday can invest wages into a traditional IRA, which also creates the possibility of converting that IRA money into a Roth for additional tax benefits. It’s important to chat with one of our advisors about this change, as a thorough tax analysis needs to be completed before deciding to convert!

The SECURE Act is important legislation and will affect many Americans' retirement and retirement planning. There are many opportunities for added retirement benefits and growth, as well as a few items to be proactive about.

What are your best moves?

1. Contact an estate planning attorney.
2. Have your beneficiaries reviewed by an advisor.
3. Determine benefits of Roth IRA conversions.
4. Review any existing trusts.
5. Consider a Charitable Remainder Trust.

Contact us to today to find out how the SECURE Act affects you and your retirement.

Creekmur Wealth Advisors may be reached at 866-358-4441 or Info@Creekmurwealth.com.