January 23, 2020

How The New Law Affects Your Retirement & IRAs

By Alynne Zielinksi, MBA, CFP®, CDFA - Manager, Financial Planning

How The New Law Affects Your Retirement & IRAs

What Does The SECURE Act Mean To Me?

I have already started my RMDs because I am 70 ½ or older.

The SECURE Act does not impact your RMDs as the new rule is not retroactive.  You must continue taking RMDs.

I turned 70 ½ in 2019.

You need to begin taking your RMDs and must take your first RMD by April 1st of 2020.  Your RMD for 2020 and subsequent years will need to be taken no later than December 31st of each year.

I will be 70 ½ in 2020.

You do not need to take RMDs until you reach age 72.  Your first RMD must be taken on or before April 1st of the year following the year you turned 72.  Subsequent RMDs will need to be taken no later than December 31st of each year.

I am inheriting an IRA and I am the decedent’s spouse.

These rules remain the same.

I am inheriting an IRA and I am not a spouse of the decedent

Option 1:  Open an Inherited IRA

  • You must begin taking your RMDs by December 31st of the year after death.
  • You must take the decedents RMD by December 31st of the current year if the decedent has not taken it yet and was required to.
  • The Inherited IRA must be depleted within 10 years of the original account holder’s death.

Option 2:  Open an Inherited IRA – 5-year method

  • Only applies if the decedent was not required to take RMDs.
  • Take the entire balance by December 31st of the fifth year after the year of the original account holder’s death.

Option 3:  Lump Sum Distribution

I want to make a Qualified Charitable Distribution (QCD) from my IRA

These are not affected by the SECURE Act.  QCDs may still be taken from IRAs as early as age 70 ½.

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Marcum Wealth, or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Marcum Wealth.  Please remember to contact Marcum Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Marcum Wealth is neither a law Firm, nor a certified public accounting Firm, and no portion of the commentary content should be construed as legal or accounting advice.  A copy of the Marcum Wealth’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request. Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.  It should not be assumed that your Marcum Wealth account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your Marcum Wealth accounts; and, (3) a description of each comparative benchmark/index is available upon request.