Investment Strategies with Aileron: The Secure Act

By: Bill and Cindi Porter, AILERON INVESTMENT ADVISORS

Q: What should I know about The Secure Act, the new tax reform law?

A: The Setting Every Community Up for Retirement Enhancement Act, commonly referred to as The Secure Act, was signed into law by President Donald Trump on Dec. 20, 2019. This was a bipartisan effort to assist Americans who are preparing for retirement. Space does not allow us to review all the aspects of the new law, but below are a few of the key provisions that may affect many of our readers.

■ Repeals the maximum age for traditional IRA contributions, which used to be 701⁄2 as long as you are still working.

■ Increases the required minimum distribution (RMD) age for retirement accounts up from 701⁄2 to age 72 for those who attain age after 12/31/2019. It remains 701⁄2 for those already taking RMDs.

■ Beneficiaries of an inherited IRA or 401(k) must withdraw the assets within the 10 years following the death of the account holder (not over your lifetime as before).

■ Allows long-term, part-time workers to participate in 401(k) plans.

■ Permits parents to withdraw up to $5,000 from retirement accounts penalty-free within a year of birth or adoption for qualified expenses.

■ Allows parents to withdraw up to $10,000 from 529 plans to repay student loans.

A periodic portfolio review is always a good idea. However, after Congress changes the rules (again), a financial checkup with your advisor should probably become a top priority.

This is for education only. Before using this information in any way discuss it with a financial professional. There are many risks associated with stock trading. You may lose some or all of your financial investment. Securities offered through Dempsey Lord Smith, LLC Member FINRA/SIPC. Securities offered through Integrated Financial Planning Member FINRA/SIPC. Advisory services offered through Dempsey Lord Smith, LLC. All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.

Send your investment questions to: [email protected].

All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.

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