SECURE Act changes retirement savings rules

Of course, these are subject to change…

But for most folks the main planning challenges/opportunities are going to be around the new 72 age for Required Minimum Distributions, and the elimination of the “stretch” distributions for inherited IRAs. (These, specifically, affect nearly everyone with any retirement account. The rest of the changes affect much smaller numbers of people).

The rules requiring computations of theoretical withdrawal rates are going to be interesting. Right now folks often have no idea how much they can eventually draw down on an annual basis from their future accumulated retirement savings. Unfortunately, the statutory computation won’t really fix this, as it will assume that everyone buys an annuity with their savings. Most people don’t do that.

We financial planners will be working diligently to help our clients navigate these changes.

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