Secure Act Quirk Opens a Tax Savings Window in IRAs
January 14, 2020 by Janet Levaux
The new year brings advisors lots of changes to retirement planning, thanks to the passage of the Setting Every Community Up for Retirement Enhancement (Secure) Act in late 2019 (as part of the year-end spending bill).
In addition to increasing the age for required minimum distributions and dropping restrictions on IRA contributions for some workers, the sweeping retirement bill also generally puts an end to the use of “stretch IRAs.” Buried in this mountain of legislation, certified financial planner and CPA Jeffrey Levine found a quirk that he says could save retired taxpayers thousands of dollars over several years.
Levine, head of advisor education for Kitces.com and CEO of BluePrint Wealth Alliance, and other members of Kitces’ team have been meticulously reviewing the new law.
After firing off a series of 34 tweets on the Secure Act last month, Levine’s diving into it further in early January and just discussed (via social media) the convoluted issue of the Secure Act’s impact on qualified charitable distributions via a new anti-abuse rule.