The Secure Act has passed

[still_one]

https://www.fidelity.com/go/secure-act-faqs

[question everything]

1. This is the change in "stretch IRA" Here are some advice from the WSJ Laura Saunders

For savers who counted on a decades-long IRA stretch for their heirs, here are moves to consider in light of the rule change.

Make your spouse the heir to the IRA.

Surviving spouses still have favorable rules. For example, a spouse who inherits a Roth IRA could put the account in his or her name, not take payouts during life and then leave the accounts to younger heirs who get a 10-year stretch. Spouses who inherit traditional IRAs also have options. For example, a 72-year-old widow could take payouts over her life expectancy of about 26 years if she claims her deceased husband’s IRA as her own, and then leave the account to younger heirs at her death. Those heirs would get a 10-year stretch on remaining assets.

Review IRA trusts.

Some IRA owners have arranged to leave accounts to a trust at their death in order to preserve assets from spendthrift or ne’er-do-well heirs. Natalie Choate, an attorney and retirement-plan specialist in Boston, says it’s imperative for IRA owners who have set up trusts to revisit them soon. “Some types of IRA trusts make no sense under the new law, so people need to check its effect,” she says.

Look into life insurance.

The new law favors life insurance over IRAs as a tax-efficient way to move assets to heirs, says Mr. Slott, because life insurance payouts can be free of both income and estate taxes. Life insurance can also be more flexible than an IRA if the owner wants to leave assets to a trust, he adds. But policies must be bought with after-tax dollars, and buyers should purchase them with assets they won’t need during life. It’s also important to determine fees up front and learn whether insurers can raise them.

Do nothing.

A 10-year stretch is still a stretch. For inherited Roth IRAs, 10 years of tax-free growth with no required payouts is a good benefit. If the account is a traditional IRA intended for several young-adult heirs, then multiple payouts over 10 years could be spread over many low tax brackets if the heirs are just starting out.

https://www.wsj.com/articles/inheriting-iras-just-got-complicated-thanks-to-new-retirement-overhaul-11576904481 (paid subscription)

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Will be glad if our IRAs will hold for the duration..

[still_one]

2. Important information. Thanks

[mnhtnbb]

3. Age required to take RMD's from IRA's has changed as a result of the SECURE Act.

One of the many changes to retirement plans brought about by the SECURE Act being signed into law by President Trump on Dec. 20 after sailing through Congress as part of the larger government spending bill is to required minimum distributions (RMDs).

Acknowledging that Americans are living and working longer, the SECURE Act increases the RMD age from 70½ to 72, applicable to distributions made after Dec. 31, 2019, for individuals who reach 70½ from Jan. 1, 2020 on.

Americans will also have the option to keep contributing to individual retirement accounts after the age of 70½ (which was previously not allowed), as long as there is earned income to contribute in the first place. The 70½ rule began in the 1960s when life expectancy was shorter.

Prior to the SECURE Act, participants in qualified retirement plans generally were required to begin receiving certain minimum distributions by April 1 of the calendar year following the year in which the participant attains age 70½ or terminates employment, whichever comes later.

https://401kspecialistmag.com/rmd-age-jumps-to-72-in-2020-after-secure-act/

[still_one]

4. Exactly