How to Avoid the Secure Act’s Long-Term Tax Traps
February 5, 2020 by Joe Elsasser
Welcome to Hidden Value, the column where Joe Elsasser, CFP, addresses common financial planning issues with insights advisors and their clients may not have considered.
Many Americans have started to adjust to changes brought on by the sweeping tax overhaul enacted in 2017. However, new changes introduced by the recent Setting Every Community Up for Retirement Enhancement Act, or Secure Act, could have a big impact as well. Advisors who specialize in retirement income planning, particularly for the mass affluent, should be aware that some of these changes could cause eventual tax headaches, particularly those related to the new, later age for required minimum distributions, and the elimination of the “stretch IRA.”