Key Features of the Secure Act Part I
Thank you for stopping in. My name is Tina Anders. I am the Fee Only certified financial planner for Anders Wealth Management located here in Petaluma, California.
I’m here to talk to you today about the Secure Act. Secure is an acronym which stands for Setting Every Community Up for Retirement Enhancement. Also want to say thank you for your patience because I am filming at home because of shelter in place. Okay, so the Secure Act has to do with many, many things. But I’m going to talk to you mostly about how it’s addressed with individual retirement accounts, which I will call IRAs,
You can contribute now, to an IRA, as long as you’re working. It used to be that even if you were working past the age of seventy and a half, you couldn’t contribute past the age of seventy and a half. Now you can contribute for your entire working career.
Secondly, that I want to point out is required minimum distributions. So, these are distributions that come from a traditional or other IRA, not Roth IRA, which are required at a certain age. It used to be seventy and a half, you can prolong that until the age of seventy-two.
Qualified charitable distributions, I will call these QCD’s. QCD’s are a great way to transfer money directly from your individual retirement account to a qualified charity. Use to be that people used these in lieu of taking required minimum distribution. However, that has been prolonged until the age of 72, required minimum distributions, RMDS. So, you can still do a QCD at the age of seventy and a half. Okay, up to $100,000. I’m going to talk about QCD’s in another video, but I just want to let you know you can do them at the age of seventy and a half.
IRA money can be taken without penalty for child births and adoptions. There are rules involved, so check with me. If you have questions about that happy to walk you through the process. foster care workers also may contribute to individual retirement accounts. The thing is, there are rules there as well. So please reach out for clarification before you make a contribution as a foster care worker because you don’t want it to end up as taxable income.
529 plans are college savings plans, and you are now able to use up to $10,000 from your 529 plan to repay student debt. You can also take money from your 529 plan, new this year, to use for apprenticeships.
I want to also talk to you about annuities, employer sponsored retirement plans, such as 401K’s, 401A’s 457, 403B’s etc, etc. So Many, you will see more annuities available in employer sponsored retirement plans. And if you want to talk about that we can certainly do so. Also, want to tell you about graduate students and postdoctoral students. If you’re receiving a stipend and or a fellowship, you are able to contribute to an individual retirement account. So, you can see that there’s a shift in that an encouragement to start putting money away.
Thank you again for stopping by. If you have any questions, comments, or you have a topic you’d like me to talk about, please either email me at [email protected] or go to my contact page on my website at anderswealth.com and fill out as much or as little as you want on the contact page. But at the bottom, there’s a text box, put in whatever you want to make sure that I see and I will reply to you. And if you want me to talk about a topic, I will do my best to do so. Thanks again for stopping by. I am in your corner.