In addition to dealing with COVID-19 last year, on January 1, 2020, Congress enacted a major change in the distribution of retirement accounts. This law was called the Setting Every Community Up for Retirement Enhancement Act, commonly known as the SECURE law.. While there are good provisions in the law (increasing the minimum required distribution (RMD) start date to age 72) – the overall result of the law will be the elimination of the “Stretch IRA”.
The Stretch IRA has enabled your beneficiaries to withdraw the Minimum Required Distributions (RMDs) throughout their lives. Now, all beneficiaries other than the spouse will have to withdraw the full amount from the inherited retirement accounts within 10 years, resulting in a significant increase in the timing and amount of taxes owed.
A workshop presented on Thursday November 18 at Edmonds College by Dick Harsin, CPA, CFP will discuss SECURE in detail. He will explore alternative strategies to reduce your income tax and pass the remaining values in your retirement account to your beneficiaries in the most tax efficient way. This workshop will explore the relationship between IRA withdrawals and the taxation of Social Security and Medicare Part B payments. To register for the workshop, access the following link:
You can find out more and register at this link.
Explore Alternative Strategies to Reduce Income Tax on Retirement Distributions
My Edmonds News
Sign up for our daily Edmonds newsletter