• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Schedule Appointment Client Portal Login

Wisdom Wealth Strategies

Your Retirement Financial Advisors Denver Colorado

  • Home
  • About us
  • Financial Planning
  • Investment Management
  • Tax Planning
  • In The Media
  • Blog & Social
  • Contact Us

What the SECURE Act Could Mean for Retirement Plans

Blog & Social Media   |   Financial Planning   |   What the SECURE Act Could Mean for Retirement Plans

What the SECURE Act Could Mean for Retirement Plans

If you follow national news, you may have heard of the Setting Every Community Up for Retirement Enhancement (SECURE) Act. Although the SECURE Act has yet to clear the Senate, it saw broad, bipartisan support in the House of Representatives.

The legislation could make Individual Retirement Accounts (IRAs) a more attractive component of retirement strategies and create a path for more annuities to be offered in retirement plans – which could mean a lifetime income stream for retirees. However, it would also change the withdrawal rules on inherited “stretch IRAs,” which may impact retirement and estate strategies, nationwide.1

Let’s take a quick look at the highlights of the SECURE Act.

The SECURE Act’s potential consequences.

Currently, traditional IRA owners must take annual withdrawals from their IRAs after age 70½. Once reaching that age, they can no longer contribute to these accounts. The mandatory age-linked withdrawals can make saving especially difficult for an older worker. However, if the SECURE Act passes the Senate and is signed into law, that cutoff will vanish, allowing people of any age to keep making contributions to traditional IRAs, provided they continue to earn income.1 In addition, if the SECURE Act becomes law, savers won’t have to take Required Minimum Distributions (RMDs) from a traditional IRA until age 72. 2

The SECURE Act would also effectively close the door on “stretch” IRAs. Currently, non-spouse beneficiaries of IRAs and retirement plans may elect to “stretch” the required withdrawals from an inherited IRA or retirement plan – that is, instead of withdrawing the whole account balance at once, they can take gradual withdrawals over a period of time or even their entire lifetime. This strategy may help them manage the taxes linked to the inherited assets and may leave the assets invested to grow for a longer period of time. If the SECURE Act becomes law, it would set a 10-year deadline for such asset distributions.3

What’s next?

The SECURE Act has now reached the Senate. That means it could move into committee for debate or it could end up attached to the next budget bill, as a way to circumvent further delays. Regardless, if the SECURE Act becomes law, it could change retirement goals for many, making this a great time to talk to a financial professional.

 

 

wisdom wealth strategies

Andrea L. Blackwelder, CFP®, ChFC and Joseph D. Clemens, CFP®, EA are the founders and partners of Wisdom Wealth Strategies. Their shared passion is simple: to bring financial empowerment, understanding, and peace-of mind to people who wish to improve their financial future, build wealth for their families, and achieve financial independence. Click here to find out more about how you can work with the Denver Financial Advisors at Wisdom Wealth Strategies.

Filed Under: Financial Planning, Retirement Tagged With: SECURE Act

Interested in Working Together?

We’d love to learn more about your financial needs and answer any questions you have about our practice.

Request a Consultation

Footer

Certified Financial Planner

Social

See what we’re up to by following along on social media.

  • Facebook
  • LinkedIn
  • Twitter

Contact

Get directions
(720) 314-8009

Newsletter

Stay up to date by subscribing to our newsletter.

  • Disclosure
  • Form CRS

Copyright © 2022 Wisdom Wealth Strategies, LLC. All Rights Reserved.
Wisdom Wealth Strategies, LLC is an SEC-registered investment adviser. Our firm is notice filed in Colorado and Texas, and may be exempt from notice-filing in other jurisdictions where we serve our clients.


Site Crafted by HOTFIRE CREATIVE