On March 29, the House Ways and Means Committee unveiled HR 1994, or the SECURE (Setting Every Community Up for Retirement Enhancement) Act. This is a bipartisan bill, co-sponsored by Rep Ron Kind (D-Wi), ranking member Kevin Brady (R-Tx) and Mike Kelly, (R-Pa). On April 1, the Senate, in a similar move, introduced a companion bipartisan bill, RESA (the Retirement Enhancement and Savings Act). The proposed laws cover a lot of retirement issues, but the most far-reaching is a modification of the ‘Stretch’ IRA rules. Both proposals accelerate IRA distributions and accordingly, taxes on inherited IRAs for non-spouse beneficiaries.
The current rules allow a spouse to rollover their deceased spouse’s IRA and declare it their own as a ‘spousal IRA.’ This rule remained unchanged in the proposed legislation. At age 70 ½, the owner of an IRA must begin Required Minimum Distributions (RMD). One proposed change contained in the House bill is to increase the RMD age to age 72. Click on this link (View the orginal post here) to read the full article on Forbes.com.
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Originally posted on April 23, 2019 on Forbes.com by Leon LaBrecque, Forbes Contributor.
View Leon LaBrecque's Forbes contributor profile and other blog posts here: https://www.forbes.com/sites/leonlabrecque/
Image: Getty, Forbes.com original post.