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SECURE Act Legislation heads to the Senate……..and what that could mean for your non-spouse beneficiaries.

I have had a few clients email requesting information on how the SECURE act could impact their future financial plans related to RMD’s and passing the asset to their children.  As traditional pensions are fading away, people are mostly responsible for fully funding their retirement income.  The main vehicle by which this is accomplished is a 401k and an IRA.  The SECURE Act focus is to encourage and “simplify” the qualified saving process for the average person.

One item that is favorable would be extending RMD’s, required minimum distributions from 70 ½ to 72 but the main impact for those who have truly been ardent savers and plan to pass along the tax deferred growth account to non-spouse beneficiaries would be limited if not extinct.  A non-spouse beneficiary would have only 10 years by which to completely withdraw the account and yes, pay the respective income taxes on those withdrawals.

Kiplinger posted a good article that I wanted to share and have included the link:

https://www.kiplinger.com/slideshow/retirement/T047-S001-how-the-secure-act-could-impact-retirement-savings/index.html

Should you have any questions about your specific circumstance related to passing along your hard earned asset to a non-spouse beneficiary and what planning choices are available to preserve the asset in a tax efficient manner, contact us at www.arkagosadvisors.com as we are happy to work with you and review your options.

Do you have a plan for long-term care?

Developing a LONG-TERM CARE Plan is quickly becoming a necessity just as planning for retirement has evolved over the past 20 years into a true necessity.  The needs could be for yourself or your aging parents, regardless there is a quickly rising need to understand and plan for future expenses:

Centenarians, those living to (or beyond) the age of 100, now number 82,000 up from 50,000 in 2002. Those 100-plus are America’s second-fastest growing age group, just after those 85 and older.  -WSJ, May 20, 2019

 Arka̅gos Advisors is a holistic planning firm and as a standard part of our financial planning assessment for all clients we calculate a needs analysis for future care needs and help the client creating a viable plan that is sustainable.  Let us know if we can assist you and your family to ensure that your needs are covered for late in life expenses.