Every Community Up for Retirement Act (SECURE Act)

Setting Every Community Up for Retirement Enhancement Act (SECURE Act)

Presentation to the Salt Lake Estate Planning Council James R. Beaudoin, CPA, PFS, CFP? May 20, 2020

SALT LAKE: 215 SOUTH STATE STREET, SUITE 850 / 801.533.0409 OREM: 1329 SOUTH 800 EAST / 801.533.0409



Introduction

? Enacted 12/20/2019, effective TYBA 2019 ? Intended to help people save for retirement ? Actually devalues family retirement savings ? COVID-19 hit shortly after enactment ? CARES Act enacted 3/27/2020

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What We Will Cover Today

For convenience I refer to IRA to also include DC plans ? CARES Act retirement plan and IRA changes ? Delayed required beginning date for RMDs ? Loss of the "stretch" IRA ? Enhanced ability to make contributions ? New exceptions to the 10% penalty ? Qualified plan and ?401(k) changes ? Numerous other changes

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Selected CARES Act Retirement Plan and IRA Changes

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COVID-19 Distributions

? $100,000 with no 10% early withdrawal penalty ? Taxable income spread ratably over 2020-2022 but may

elect to include all income in 2020 ? May recontribute to an eligible plan within 3 years and

refund tax, treated as a trustee-to-trustee transfer

? Roth conversion income over 3 years, may have tax risk ? Taken from 1/1/2020 thru 12/30/2020 ? Eligibility: account owner or spouse or dependent is

diagnosed with SARS-CoV-2 or COVID-19; or who experiences adverse financial consequences from being quarantined, furloughed, or laid off, or who has had work hours reduced, or who is unable to work due to lack of child care, or who is a business owner who must close or reduce hours of operation ? New Form 8915-E reports taxable amounts and repayments

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