Understanding The SECURE Act, Part 2

The SECURE Act will bring several changes that may impact your retirement planning, and Nathan will go over four more of those provisions. This concludes our two-part series on the SECURE Act 2019.
Share this episode with a friend:

Today’s Question:

The SECURE Act will bring several changes that may impact your retirement planning, and Nathan will go over four more of those provisions. This concludes our two-part series on the SECURE Act 2019.

Click the timestamps below to jump ahead in the episode…

Confidence Corner

1:50 SECURE Act 2019 (continued)

  • This is part two talking about the SECURE Act, so go back to the previous podcast for part one.
  • First major retirement legislation since 2006. 29 new provisions, but we will talk about eight. This is not yet finalized and the Senate has a similar bill.

4:26 Tax credits for automatic enrollment

  • This will be an incentive for small companies to automatically enroll employees into a retirement plan. Employees will have the option to opt-out. The credit will go to the business owner to help offset the cost of setting up the plan.
  • So many Americans are employed through small businesses, so hopefully this will help more people to start saving.

8:34 Penalty-free distributions for the birth or adoption of a child

  • Under the Act, you could take out $5,000 from your retirement following the birth or adoption of a child.
  • This allows you to avoid the 10% penalty, but you still pay the taxes.

10:48 Lifetime income disclosure for defined contribution plans

  • A 401(k) plan is an example of a defined contribution plan. This rule would require employers to send a notice every year showing the expected growth of your money and your estimated monthly income in retirement.
  • Nathan says it sounds like it will be a state-run plan under the proposed rules.

14:29 Removal of stretch IRA provisions

  • Nathan loves stretch IRAs and feels this is the worst item in the SECURE Act because it eliminates a fantastic retirement building tool.
  • This makes an inherited IRA have to be paid out, and therefore taxed, over a ten-year period. In the Senate, they are discussing setting a limit for this, which will have an impact on Roth conversions. Typically, Nathan recommends Roth conversions once an account hits $700,000, but if this is passed in the Senate with a limit then he will be forced to have that conversation with clients much sooner.

A Point Of Wisdom:

Additional Resources:

Schedule A Meeting

Download Your Retirement Rescue Toolkit – Learn More About Our Firm

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend:

EXPLORE MORE EPISODES

What Weddings and Retirement Planning Have in Common

Following the wedding of Nathan’s son, we wanted to discuss the many things retirement planning and wedding planning have in common. From financial management in the planning process to preparing for the needs and wants of multiple people, there’s a lot to think about. Everybody hopes it will be perfect, but you know that life is going to throw you curveballs. Having a plan will help you prepare, and having a good mindset will help you get through the tougher times in both marriage and retirement planning. 

Listen Now »

Breaking Down The Commentary After Recent Bank Collapses

After a string of recent bank collapses, should we feel comfortable with having money in the banks? What safeguards have been put in place by the government to offer some protection? A lot of talking heads have weighed in on this issue recently, so we’re going to discuss some of those quotes in today’s episode. We’ll take a closer look at what happened and what strategies you might want to consider as well.

Listen Now »

How Age and Wisdom Impact Your Financial Planning

One of the reasons that financial planning is not a one-size-fits-all answer is that everyone’s age, goals, and experiences are different. What you needed in your 20s might look very different from what you need to do in your 50s. Today we talk through the impact both age and wisdom have when you sit down and make a financial plan with a qualified professional.

Listen Now »

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

SUBSCRIBE