Year End Congressional Action made these changes to IRA rules for 2020:
- IRA’s can be funded for life as long as you have earned income. No longer must you stop funding as age 701/2. Great tax deferral opportunities.
- Required Minimum Distributions (RMD) age was increased from age 701/2 to 72.
- Inherited IRA’s must be distributed faster (10 year maximum) ending the ability to stretch the payments out to your heirs. Many options to existing tax planning should be reviewed.
The changes impact prior planning opportunities on income deferral and offer additional savings opportunities. Significant changes for retirement plans were also implemented by the Secure Act. This will require new planning concepts to fit your situations.
We look forward to the opportunity to review your situation. Contact us to discuss.