Wealth Management & Financial Planning

Wealth Management & Financial Planning

Proposed Changes to Your IRA, The Secure Act of 2019

Memorial Day 2019 will undoubtedly be a long remembered with the tornados that hit across the Midwest, including communities in Indiana like our neighbors in Pendleton. Our prayers go out to those most affected by the power of nature. Hopefully, there were still some happy memories created over the weekend. Now, I want to mention something else that you may or may not be hearing about online or in the news.

Rarely do we write about legislation that is being considered and not passed, but there is currently a Bill called The Secure Act, that proposes significant changes to your IRA.  The Secure Act has bipartisan support, and support of the Oval office.  It has passed the House and will likely pass the Senate and why we feel it’s important to move forward and start planning for The Secure Act.

To some extent changes to your IRA accounts are imminent. Unless you are taking money from your IRA for your monthly needs, you might want to consider delaying those distributions until we see what the new laws bring forth. Two notable items that appear on both the Senate and House proposals are raising the Required Minimum Distribution age to 72 from 70.5 and increasing the age for people to contribute to their IRA plans. The proposed changes will make every Roth contribution or conversion decision (as always, your situation is unique and needs special attention) you make going forward more important. We will have more on this later as The Secure Act becomes finalized.

Financial Enhancement Group has an affiliation with Ed Slott Elite IRA Group. They are a big part of our training in the tax planning arena. I just returned from three days of intensive tax training with Ed’s group. We also get much of our information from Keebler and Associates. Our FEG planning team invested time last week on some of the crucial tax strategies that we need to consider. Some may or may not apply to you and your family. Regardless, tax planning needs to be done as a team and involve CPA’s as well as your financial advisor. This new legislation will make working with firms that collaborate with your CPA and attorney even more important.

A change of this magnitude puts the people who pass away or lose their cognitive ability in the first year at most jeopardy. If there is a family problem, I suggest that you get in for a visit as soon as possible.

The Financial Enhancement Group is on this with a full court press along with our CPA partners. We love helping families navigate the complexity of the changes and what those changes mean for your investments and your financial journey.

To schedule a meeting with the Financial Enhancement Group please call 1.800.928.4001 or visit yourlifeafterwork.com

Disclaimer: Joseph Clark is a Certified Financial Planner™ and the Managing Partner of Financial Enhancement Group, LLC an SEC Registered Investment Advisor. He is the host of “Consider This” found on WIBC Saturday mornings from 6-7a.m. as well as three other Indiana-based radio stations. Joe has served as an Adjunct Assistant Professor at Purdue University where he taught the capstone course for a degree in Financial Counseling and Planning.

Financial Enhancement Group is an SEC Registered Investment Advisor. Securities offered through World Equity Group, Inc., Member FINRA/SIPC, and a Registered Investment Advisor. Investment Advisory services offered through Financial Enhancement Group (FEG) or World Equity Group.  FEG is not owned or controlled by World Equity Group.

Joseph Clark and World Equity Group, Inc. do not provide tax or legal advice. For tax advice consult with a qualified tax professional. For legal advice consult with an attorney.

Source: https://www.congress.gov/bill/116th-congress/house-bill/1994

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