This past January, back when your 401lk was a bit fatter, the SECURE Act came into being, probably to make us somewhat less secure. Basically, this new act shortens the time you have to take distributions from your retirement accounts to ten years with some exceptions for payments to certain “eligible designated beneficiaries”. Therefore, while you were formerly able to withdraw payments over the life of the beneficiary, withdrawal now needs to be over ten years
The full name of this new act is the “Setting Every Community Up for Retirement Act”, a new acronym more fully explained in this brief article. The important take away here is that we have a brand new law which will raise new questions for you to ask your financial advisors and tax professionals.
After learning a bit about the SECURE ACT, DO YOU FEEL MORE SECURE????