Open/Close Menu Estate Planning, Probate, Tax Law in Covina and Temple City, CA

Dear Clients & Friends,

There has been a major change in retirement planning, which may affect your estate plan. The Setting Every Community Up for Retirement Enhancement (SECURE) Act was officially signed into law on December 20.

The major changes of the Act include:

Most inherited retirement plans are now subject to a 10-year mandatory payout (verses the old rule that allowed for payouts to be based on a person’s life expectancy).
Required Minimum Distribution (RMD) age is now age 72 (verses the old rule of age 70.5).
Age limits for IRA accounts have been removed.
There is now a $5,000.00 penalty-free withdraw option for the birth or adoption of a new child.
More information may be found here:
https://www.forbes.com/sites/davidkudla/2020/01/10/four-major-highlights-of-the-secure-act/#2febfe7c76b1

Additionally, for those of you who have retirement accounts for which you’d like to give extra protection, we should discuss the possibility of drafting an Accumulation Trust for your retirement account in the near future.

Since this Act was passed only a few weeks ago, legal experts are still analyzing the legal effects. Once properly analyzed, we will send a more formal update correspondence.

– Tony J. Tyre