Are Your Retirement Plans SECURE Friendly?

Did you previously sit down with an attorney to discuss your retirement plans and the most effective strategies for passing these on to your loved ones? Given updates in new federal laws known as the SECURE Act (Setting Every Community Up for Retirement Enhancement Act), that could significantly impact some of the previous IRA strategies you used.

How Were Taxes for IRAs Handled in the Past?

In the past, taxes for individual retirement accounts passed on to loved ones or beneficiaries could be spread out throughout the beneficiary’s life, known as a stretch.

This made sense for younger beneficiaries who wanted to wait some time before drawing those benefits out of the plan.

The elimination of this technique, however, could force the recipient of an IRA account to withdraw these tax-deferred assets sooner rather than later, meaning that the taxes on those assets also must be paid sooner.

How Does the Secure Act Impact Retirement Accounts?

Anyone who has a substantial amount of money inside their retirement accounts should consider how this could potentially impact their loved ones and should consult with an experienced and dedicated estate planning lawyer to discuss options.

Determining the most effective strategies for passing on various assets to your loved ones requires careful consideration of their own financial means and awareness, tax ramifications, and whether or not there are any available strategies that could help make things easier for your loved ones.

Schedule a consultation today with a trusted estate planning lawyer serving Washington, D.C. and Maryland.

Maximize Your Retirement Contributions With an Estate Planning Lawyer’s Help

Attorney Clifford M. Cohen has more than 35 years of experience helping aging individuals in Washington D.C. and Maryland plan for retirement and navigate the complexities of estate planning and elder law. He is dedicated to helping individuals, couples, families of all sizes, and small business owners protect their assets and those they love. For a free consultation, call (202) 845-7036 or complete our contact form.