Key Features of the Secure Act Part II

Key Features of the Secure Act Part II

Hi there and 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. Here’s a key feature of the Secure Act, important right here. There used to be a rule that if you inherited money from an individual retirement account, you could stretch the distributions from that IRA over your lifetime. You can no longer do that. There is what’s called a 10-year payout rule. And what that means is while there will be no required distributions during the 10-year period, you must liquidate the account within a 10-year period.

There are a few people who are exempt from the 10-year payout rule. They are surviving spouses, minor children, chronically ill folks, disabled folks, folks that are fewer than 10 years younger. That’s fewer than 10 years younger of the deceased. Then you’re able to take it over your lifetime. But the thing about the minor child is the minor child can stretch it over the lifetime of the child. However, once that child reaches the age of majority, that child has to be subject to the 10-year payout rules.

And I wanted to mention to you trusts as a beneficiary to an individual retirement account. Oftentimes the reason people use a trust as a beneficiary to their IRA instead of a child or a grandchild or a grant, great grandchild is because they don’t want those beneficiaries to receive a lump sum of their individual retirement accounts. So, they make the trust the beneficiary and then the trust can pay out as the trust dictates to the beneficiary child, grandchild, great grandchild, Right?

But here’s the thing. Trusts are also now required to follow the 10-year payout rule. So, what that means is your wishes may not be honored if you have a trust as a beneficiary of your IRA. So, I encourage you to see your estate planning attorney, if you don’t know one, I can refer you to one. You want to check with your estate planning attorney who drew up your paperwork, revisit the paperwork, make sure it’s going to be set up for you so that your wishes will be honored. Should you predecease those beneficiaries.

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 e-mail me at [email protected] or go to my contact page on my website at

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’m in your corner.

Qualified Charitable Distributions. Right Choice For You?

Qualified Charitable Distributions. Right Choice For You?

Hi, and thanks for stopping by. My name is Tina Anders, and I am the Fee Only certified financial planner for my firm located here in Petaluma, California – Anders Wealth Management. And today I’m going to talk to you about Qualified Charitable Distributions, also known as QCD’s.

First of all, I’m just going to preface this by saying, if you’re thinking of doing a QCD from your IRA to a charity, talk to your tax professional before you do so because you want to make sure it’s in line with your tax goals.

A Qualified Charitable Distribution is a great way to transfer money directly from your individual retirement account to a qualified charity. It’s nondeductible because you’re not taking the income and then moving it over. And it goes directly to the charity. It achieves some positive tax consequences potentially and also achieves some philanthropic ideals. So, it’s a great way to do both of those.

Required minimum distributions, which are oftentimes the vehicle from which you would contribute from an IRA to a qualified charity. They are taxable or withdrawals from an IRA for instance mostly are taxable. So, it could push you, a distribution from your IRA, could push you into a higher tax bracket, thereby increasing your tax liability. It could also reduce your ability to get certain tax credits or deductions.

You can put up to $100,000 per year to a qualified charity from your IRA. And for married couples, you can each do it. So, you can each do a $100,000 as long as it’s from your own IRA. You can make the contribution to several charities as long as it doesn’t exceed $100,000. You can do it at the age of 70 and a half. If you did it prior to the age of 70 and a half, it’s going to count as taxable income so be careful about that.

You must take the funds from the IRA to the charity by the RMD deadline, which is generally December 31st of every year. As I mentioned at least a couple of times now, funds must come directly from the IRA and go straight into a qualified charity. The check needs to be made out to the charity. If the checks made out to you, the donation will be counted as taxable income to you. You don’t want that!

Eligible IRAs for QCD’s… traditional IRAs, inherited IRAs, SEP and simple IRAs, which as long as they’re inactive plans. And I’ll tell you what’s not a qualifying charity would be a donor advised fund, which we can talk about another time. Private foundations and supporting organizations, those are not eligible for qualified charitable distributions.

OK, so that’s just a brief note on QCD’s, Qualified Charitable Distributions. I want to say thanks again for stopping by. If you’d like to comment, question, point out something that you would like me to discuss in a video. Please send an e-mail to [email protected] or go to my website Go to the contact page and on the contact page, fill out as little or as much as you want. But at the bottom there’s a text box you can put in whatever information you want. I will be sure to see that I will respond to you as well as if you’d like me to talk on a video about a certain topic. I would be glad to do that as well if I can fit it in. Thanks again for stopping by. I am in your corner.