5 Ways the SECURE Act Could Harm Retirees
To avoid RMD penalties, tax bills that are (possibly MUCH) higher than necessary and other problems, make sure you understand this groundbreaking new retirement law and take steps to keep your plan on track.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act, mostly went into effect on Jan. 1, 2020. While the SECURE Act passed with a lot of bipartisan support in Congress and fanfare from financial services lobbyists, firms and trade associations, not all of the law’s provisions are encouraging for retirees.
True, there are a lot of positives, such as pushing back the required minimum distribution (RMD) required beginning age from 70.5 until 72, adding lifetime income notices in retirement plans and lowering costs for small-business owners to run retirement plans. However, the new rules could cause tax increases, trust language issues and other retirement challenges if individuals are not engaged in proactive planning.
Let’s look at five major ways the SECURE Act could actually end up hurting retirees and savers.
Article courtesy of Kiplinger
By Jamie P. Hopkins, Esq., CFP, RICP, Director of Retirement Research