Ep #8: How the SECURE Act of 2019 Impacts Your Retirement
Play • 35 mins

The SECURE act created quite a buzz in the financial news in the last few weeks. In today’s episode of Grow Money Business, Grant talks all about this new piece of legislation and how it impacts the retirement planning landscape.

The Setting Every Community Up for Retirement Enhancement Act of 2019, aka the SECURE act, was signed into law in December 2019. This episode is dedicated to giving you an overview of the SECURE act and Grant’s thoughts on how it will impact your retirement in the long run as well as the short term.

[02:15] - Impact on IRAs – Grant talks about how the SECURE act changes the age to start mandatory distribution.

[05:59] – Inheritance of an IRA – The secure act made changes to what happens when you inherit an IRA from somebody. Grant talks about what changed and how it affects you.

[12:05] – Early withdrawal penalty – Grant talks about a couple of new changes that allow you to get around the early withdrawal penalties in case you needed to take money out of your retirement funds a little early.

[15:36] – Safe harbor for lifetime income annuities – Grant explains how the SECURE act has options to take the risks associated with lifetime income annuities off the table.

[19:31] – Tax credit for 401K plans – Grant breaks down the numbers how the SECURE act expands the incentive tax credit you get for the first three years of a 401K plan.

[26:23] – Withdrawals for disasters – The SECURE act adds the option to withdraw money from retirement funds in the event of a national disaster. Grant explains the way it works.

[28:10] – Tax-free withdrawals for educational purposes – With the SECURE act, you can withdraw from retirement funds for qualified educational purposes. Grant explains this option and its limitations.

[31:50] – Don’t miss mandatory distributions – Grant explains why it’s important to do the mandatory distributions without a delay and the penalties associated with them.

 

Resources:

The SECURE act: congress.gov

Highlights of the SECURE act: bit.ly/2RxAi6L

IRA – Individual Retirement Arrangements: irs.gov

401K Plans: irs.gov

Early Withdrawals: irs.gov

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