We previously recognized Elder Law Month in May; reportedly due to the month getting its name from the Latin word for “elders” (which is “maiores” if you were interested). We are now entering into the month of June, which according to another theory, got its name from the Latin word for “juniores”, which roughly translates to “younger” (since it follows the month of May).
In January of this year, the rules governing retirement accounts changed significantly. As a result of the passing of The Secure Act, there are long-term changes you might wish to consider to your financial and estate plan.
Stretch IRAs will be abolished going forward. Most of our clients who inherited an IRA on or before December 31, 2019 were able to stretch the distributions over their life expectancy. This was the “Stretch IRA.” For our clients who are inheriting retirement accounts after December 31, 2019, this opportunity to use the “Stretch IRA” will no longer exist.
There are complex IRS regulations associated with IRAs and other retirement plans. When Clair Law Offices advises its clients concerning estate planning matters, we customarily defer questions concerning retirement distributions to our clients’ accountants and financial advisers. Errors in taking retirement distributions can be extremely costly. This is especially true of required minimum distributions (RMDs).