Congress passed important retirement legislation just before the holidays that has sent financial planners and tax professionals scrambling, because the law's impact on people with significant retirement savings is nearly immediate.
The SECURE ACT will have an important impact on the estate plans of people with large tax-deferred IRAs (often rolled over from 401k accounts). It eliminates the so-called "stretch" IRA, which allowed non-spouse beneficiaries to draw down inherited tax-deferred accounts over the course of their lifetimes. Heirs will now be required to draw down the entire account amounts within a 10-year window--a change that will have negative tax and financial-planning consequences in many cases.
Joining me on the podcast to talk about the changes - and how you can respond with some smart planning moves - is one of the nation’s best-known experts on IRAs. Ed Slott is known well to millions of public television viewers through his tv specials, and he’s also a best-selling author. His next book, Ed Slott's Retirement Decisions Guide: 2020 Edition, will be published early this year; his most recent public television special is Retire Safe & Secure! With Ed Slott.
Ed’s company provides IRA training to financial professionals, CPAs and attorneys, and his website offers free educational resources to consumers.
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The podcast is part of the subscription RetirementRevised newsletter. Subscribers have access to all the podcasts, plus my series of retirement guides on key challenges in retirement. Each guide is paired with a podcast interview with an expert on the topic; the series already covers Social Security claiming and the transition to Medicare, and how to hire a financial planner. The most recent looks at the critical decision between Original Medicare and Medicare Advantage.
Readers also get my weekly summary and analysis of key developments in retirement. This week, you’ll learn about several new reports on trends in longevity, how the new SECURE Act is impacting estate plans, and whether the coverage gap in Medicare Part D (the donut hole) has really closed.
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Ed Slott explains what the SECURE Act means for your heirs