Local advisors hear about SECURE Act updates

It was a beautiful day for lunch and some good information about the SECURE Act, retirement saving and disbursement legislation passed in December 2019. Hillary Stringfellow of Gilbert, Harrell, Sumerford and Martin presented the updates and changes, and shared some charts that detailed various distribution, inheritance and charitable options. 

Some additional key points are: 

- Most retirement beneficiaries must distribute their inherited IRA account over a 10-year period.

- The new age for required minimum distributions is 72. 

- The age limitation on IRA contributions has been removed.

- Parents can take a distribution in an aggregate amount of $5,000 penalty-free for qualified births or adoption.

- Unearned income for some children will be taxed at the parent's marginal rate.

- There are new qualified expenses for 529 plans, including apprenticeship programs and "qualified education loan repayments."

- Busines owners receive a $500 tax credit for automatic enrollment in their retirement plans.

- Small businesses are eligible for a $500 tax credit for the start-up costs of establishing a retirement plan. 

- Defined contribution plans must share a lifetime income disclosure statement to participants at least once a year.

- There are increased annuity options inside defined contribution plans.

- It is easier for small businesses to participate in a "multiple employer plan" (MEP).

For more information, please call the Foundation: 912-268-4442.

 

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