Understanding The SECURE Act, Part 1

Today’s Prep:

What is the SECURE Act? And how does it impact your retirement plans? We’ll outline some of the major changes you need to be aware of in this two-part series.

(Click the featured times below to jump forward in the episode)


Equipping Points:

Recently passed in Congress, the SECURE Act stands for Setting up Every Community for Retirement Enhancement. But what does this mean for you?

A big change included the RMD age raising to 72. How does this impact you? The RMD age was previously 70 and a half, so now those required minimum distributions don’t have to be taken out until later. This allows you to keep your money deferred for a longer period of time. You can take it out sooner though if you need it. The RMD being pushed back means you have more time to plan for what works best for you (as long as you haven’t already started taking your RMDs).

Remember, just because you take out RMDs doesn’t mean you have to spend it. There are basically three choices of what you can do with an RMD: you can spend it, you can gift it, or you can save it. Consider the different tax implications or strategies with each of these options.

Your advisor should keep you updated on all of these changes. For most people, their largest or second largest account is their qualified plans outside of their house. It’s where the most money is, the money that is going to support you all throughout retirement. Working with someone who is aware of the changes will help you make the best decisions and protect your nest egg for the future.

Listen to the full episode to learn more about the SECURE Act or click on the timestamps below to hear about specific aspects of it.

[0:48] – The SECURE Act passed, so what does that mean?

[2:17] – The RMD age was raised to 72 years old.

[4:26] – If you began taking RMDs in 2019, do you have to keep with it?

[5:43] – What can you do with your RMD?

[8:01] – The contribution age limit was also eliminated with the SECURE Act.


Related Resources:

Retirement Savings Options: IRA Contributions & Roth Conversions

7 Deadly Sins of Financial Planning

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: What Should I Do With My IRA?

June 10, 2021

When should you use your IRA and how can it be best utilized? These three questions from the mailbag all mention their IRA as an option, but what does Eric have to say about all of these situations? Find out!

Read More

Avoiding the Tax Time Bomb

June 3, 2021

Are you nervous about all the taxes you might have to pay in retirement? We talk through strategies you can implement now to reduce your taxes down the road.

Read More

The ‘What If?’ Game

May 27, 2021

Are you looking at the future and wondering, “What if…?” We talk through several scenarios to see what may or may not be possible and how you can prepare accordingly. 

Read More

Navigating the New Administration’s Tax Plan

May 20, 2021

What kind of tax plans have been proposed lately? These plans may cause you to strategize differently when it comes to your financial plan.

Read More

Retirement Readiness Pop Quiz

May 13, 2021

Know all you need for retirement? Take this little quiz to see where you stand when it comes to retirement readiness.

Read More

Baseball and Retirement Planning

May 6, 2021

America’s pastime has been enjoyed by people of all ages for many, many years, but how much have you thought about baseball from a retirement planning perspective? Today we’ll explore the parallels between being successful in sport and finances.

Read More

Unpopular Opinions In The Financial World

April 29, 2021

Which of these financial opinions are really worth paying attention to? Eric shares ways to reframe and better understand these financial opinions and how they work in your financial plan.

Read More

Retirement Planning Rules of Thumb

April 22, 2021

You may have heard of at least one if not all of these financial rules, but should you follow them? What do they really mean? On today’s episode of the podcast, we talk through four common rules of thumb when it comes to financial planning and what Eric advises about them.

Read More

Financial Abbreviations, Explained

April 15, 2021

While financial planning has a lot of numbers involved, here are a few letters and abbreviations you should know, too. Eric explains several common financial abbreviations.

Read More

Do You Agree or Disagree with this Retirement Advice?

April 8, 2021

Which of these statements is worth paying attention to and which ones should you take with a grain of salt? Eric shares whether he agrees or disagrees with five retirement planning statements.

Read More

Leave a Comment