Merry Christmas and 2020
I hope you have a magical Holiday.
It seems like yesterday we were worried about the end of computers with the predicted Y2K meltdowns. Suddenly its 2020.
Time does fly. We wish you great blessings for the upcoming Holidays and New Year.
For Estate Planning news of some importance, as part of the last-minute deal to keep the government opened, there was a significant piece of tax planning thrown into the soup. The new law that was passed greatly shortens the time allowed to withdraw money from an inherited retirement plan. I have blogged about this anticipated change, known as the Secure Act. I have also written about the importance, until now, of planning that will allow someone to leave money growing in an inherited IRA, or providing for a “Stretch IRA”.
I don’t know all the details, but spouses and some disabled beneficiaries may be able to continue to prolong withdrawals. Others will need to take all funds out within ten years, instead of over your lifetime. What this means is that for those with large amounts in retirement plans, you will want to rethink your withdrawal strategies and beneficiary provisions. These will involve developing thinking with both your financial advisor and estate planning attorney.
For those concerned about the impact of this on your planning, I suggest you start with reading the blogs linked above.
I know there is already more than enough to do in 2020. I just wanted to keep you informed of this new law. We are planning to invite you to some webinars for clients on this and other topics in the upcoming year. Check this newsletter for developments.
From all of us at the Downs Law Firm, we hope you and yours have a blessed Christmas.
Very truly yours,
Tom Downs
Find Us Online
Building wealth is only half the job. Protecting wealth for your loved ones and yourself is equally important. Through estate planning, business planning, and asset protection, our firm will help you protect everything you love — family, friends, and favorite charities. For more information, be sure to visit our website, where you will have access to our blog, events schedule, and a complimentary newsletter subscription!
