Retirement Savings Rules Have Changed: Unpacking the SECURE Act

The SECURE Act, signed into law at the end of 2019, is the most significant new legislation affecting retirement investing in more than a decade.

In this illuminating conversation, Vice President of Wealth Services Patrick Carlson sits down with Vice President Bob Lepson and Account Manager Geoffrey Turner to unpack the broad themes and impactful provisions of the new legislation.

Among the discussion topics:

• New age limits for required minimum distributionsA required minimum distribution is the amount of money that must be withdrawn each year from tax-deferred retirement accounts once the beneficiary reaches retirement age (72, according to IRS rules). from retirement accounts
• Why inherited IRAs must be emptied faster for most beneficiaries
• Improved access to annuitiesA financial instrument that pays the holder a guaranteed stream of payments. The annuity is funded by either a lump sum (one-time) or a series of deposits. Once funded, the sum is invested by the insurance company who sold the annuity (the accumulations phase). After a certain trigger (for example, the holder’s retirement or reaching a certain age) payments begin to be issued to the holder (annuitization phase). Annuity payments may be fixed or variable in both amount and in length (some pay out for a designated span of years, others until the holder’s death). in 401(k) plansA 401(k) plan is a retirement account that a company sets up on behalf of its employees. Both the participant and the employer can contribute to the account. There are two types of 401(k)s, traditional and Roth. Income invested in traditional 401(k)s isn’t taxed while it’s invested, but is taxed when it’s withdrawn. Income invested in a Roth 401(k) is taxed before it’s invested, but no tax is paid when it is withdrawn., and potential drawbacks
• Penalty-free withdrawal options for new parents

It’s never too soon to be better informed about planning for retirement. To learn more, listen to the podcast by clicking the button above.

For additional background and analysis of the SECURE Act, read our The SECURE Act and Your Retirement report by clicking here.