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RMD age just changed to 72 for those reaching 70 1/2 in 2020

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This is the best article if found that explains it, to simplify it, if you turn 70 1/2 in 2020 your new date for RMD withdrawal is a when you reach age 72.

This who reached 70 1/2 in 2019 or before are under the same old rules ,nothing changed for you. your withdrawal age is 70 1/2.

There are some exceptions and ways to delay withdrawal.   but this article just for your info, for more information contact your investment company.

https://www.forbes.com/sites/jamiehopkins/2019/12/18/why-the-secure-act-makes-2020-the-year-of-missed-rmds-from-iras/

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No more stretch IRAs either after 12/31/19. Any IRA left to spouse or kids has to be liquidated(and taxed) within 10 years. 

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Secure act raises taxes for many:

 

The new 10-year rule drastically diminishes the chances of withdrawing assets in a tax-friendly manner

 For those sons and daughters  who are beneficiaries nearing retirement (in less than 10 years) you may want to delay taking any withdrawals from these inherited accounts under the 10-year rule until after you have retired, so that the withdrawal is not taken on top of their earned income (current salary),

There are no required minimum distributions within those 10 years, but the entire balance must be distributed after the 10th year.  You could spread the distribution  over 3 or 4 years if you want, the 8th, 9th and 10th year etc to pay less taxes.

The downside of secure act allowing more annuities in 401k plans: Annuities are complex investment products, and the wrong choice can be detrimental to a person’s portfolio. Will The annuity company be there for you.            You are betting on their  financial stability. In the late 80s Mutual benefit annuity company when under and gave everyone  about 60% of there principal with no interest.  Mutual benefit actuaries when they sold the annuities  did not calculate people would live longer.

Upside of annuities “If they can be structured in a way to meet long-term retirement income objectives    You may live to be 100.

We will see if there are any loop holes to the secure act as it gets applied in the next two years.

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