Anderson Griggs Investments | Financial Advisor - Rock Hill, SC
  • Home
  • About
    • Our Story
    • Our Investment Philosophy
    • Our Team
  • Services
    • Services for Individuals & Families
    • Trust Management Services
    • Our Process
    • Our Fees
  • Resources
    • Our Letters to Clients
    • Intelligent Investing Radio Shows
    • Video Series >
      • Investing Basics
      • Differences Between Professionals
      • 10 Steps to Improve Returns
      • Investing Strategies
  • Contact

Our Letters to Our Clients

The Secure Act

2/20/2020

 
In December of last year, the Setting Every Community Up for Retirement Enhancement Act (a.k.a. the SECURE Act) was passed, and it became effective on January 1st of this year. The enclosed article explains the Act and the major changes taking place, but I wanted to point out the ones that are most likely to affect you.
First, the initial age at which you must start taking required minimum distributions (RMDs) from your traditional IRA account has changed. These annual distributions can now be put off until age 72, whereas previously they had to begin at age 701/2. However, for those of you who have already started taking distributions, this does not affect you. You must continue to take the minimum distribution each year as you have been.

Second, eligibility rules for making IRA contributions have changed. You are now able to contribute to a traditional IRA at any age as long as you have earned income that year. Previously you were no longer able to contribute after age 701/2.

Finally, the so called “stretch IRA” provision is no longer an option for most beneficiaries of IRA accounts going forward. Beneficiaries of IRA accounts must now withdraw all funds from the inherited IRA account within ten years of inheritance. They are no longer able to take minimum distributions over their own life expectancy, thus “stretching out” the IRA and
stretching out the tax liability over the years. There are a few exceptions to this. Your spouse, for instance, is still able to “stretch” the IRA over his or her lifetime. This will, however, affect how others inherit IRA accounts from you, including your children. Also, you should note that this change only applies to IRAs inherited in 2020 and going forward. For those of you who already have an inherited IRA as of 2019, you will continue to get the benefit of the stretch.

We know these changes may concern some of you, particularly the loss of the stretch IRA for your heirs. Whether we need to make any changes to your accounts and investment strategy will depend on your own individual family situation. We encourage you to come in for a meeting if you are concerned, and we will go over your goals and accounts in detail. Also, even if you don’t feel you’ll be affected by these changes, we’d still love for you to come in for an account review, particularly if we haven’t seen you in a while. Please give us a call and we’ll set up an appointment.

Sincerely,

Libby

Comments are closed.
    Kendall J. Anderson

    Kendall J. Anderson, CFA, Founder

    Justin Anderson

    Justin T. Anderson, President

    Categories

    All
    Market Commentary
    Monthly Client Letters

    Archives

    April 2025
    March 2025
    January 2025
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    November 2023
    October 2023
    September 2023
    June 2023
    April 2023
    March 2023
    February 2023
    January 2023
    November 2022
    October 2022
    August 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    January 2021
    December 2020
    November 2020
    August 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    November 2019
    September 2019
    July 2019
    June 2019
    April 2019
    February 2019
    January 2019
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    April 2018
    January 2018
    December 2017
    October 2017
    September 2017
    July 2017
    May 2017
    April 2017
    January 2017
    November 2016
    October 2016
    September 2016
    July 2016
    June 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    October 2015
    September 2015
    July 2015
    April 2015
    January 2015
    December 2014
    November 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    December 2013
    October 2013
    August 2013
    July 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    February 2012
    January 2012

    RSS Feed

Disclosures
Privacy Policy
Common Sense Investment Management for Intelligent Investors
113 E. Main Street Ste. 310
Rock Hill, SC 29730
803-324-5044 or 800-254-0874
[email protected]



  • Home
  • About
    • Our Story
    • Our Investment Philosophy
    • Our Team
  • Services
    • Services for Individuals & Families
    • Trust Management Services
    • Our Process
    • Our Fees
  • Resources
    • Our Letters to Clients
    • Intelligent Investing Radio Shows
    • Video Series >
      • Investing Basics
      • Differences Between Professionals
      • 10 Steps to Improve Returns
      • Investing Strategies
  • Contact