Accumulation: Safe & Secure
December 3, 2019 by Rich Lane
Rarely does a piece of national legislation significantly improve the availability of annuities to consumers, but that is what has occurred with the SECURE Act. Though it hasn’t yet been enacted into law, advisors should examine how the proposed legislation would affect annuity sales, while also being prepared to respond to changes should the bill become law. Clients will be looking to you as a trusted source of information to protect and enhance their financial security, so staying current on the details of these evolving policies will be important.
What is the SECURE Act?
At its core, the Setting Every Community Up for Retirement Enhancement Act of 2019 — better known as the SECURE Act — is meant to enhance the retirement savings options of Americans. It aims to increase consumers’ access to tax-advantaged retirement savings accounts and beneficial options like annuities in order to prevent older Americans from outliving their savings.
On May 23, 2019, the U.S. House of Representatives passed the SECURE Act by a vote of 417 to 3, so it very clearly has strong bipartisan support. As of the time this article was written, the SECURE Act is still pending in the Senate.
The bill includes 29 provisions aimed at increasing access to tax-advantaged accounts and would affect numerous rules related to retirement planning. Among the highlights, its goals are to:
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