There is a retirement savings crisis looming in America. Not only are we living longer, but according to Northwestern Mutual, a third of those approaching retirement age have less than $25,000 socked away in a retirement plan. Further, the U.S. Bureau of Labor Statistics reports that 45% of adults don’t even have an employer-provided retirement plan.
The Setting Every Community Up for Retirement Enhancement Act (nicknamed “the SECURE Act”), which became effective January 1, is meant to address this crisis by allowing Americans more opportunities and more time to contribute to their retirement savings. Here are a few highlights from the Act:
So, how are these tax advantages to be paid for? Significantly, no longer will non-spouse beneficiaries be able to stretch out inherited retirement accounts over their lifetime. With few exceptions, a retirement account going to anyone other than a surviving spouse must now be distributed within ten years after the original account owner’s death.
Questions? Please give us a call at (248) 477-6300.
© 2021 Wright Beamer, PLC