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ARTICLE · 28 FEBRUARY 2020

SECURE Act Signals Significant Changes For Estate And Retirement Planning

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The changes noted below will have consequences for both retirement and estate planning.

United StatesEmployment and HR

The SECURE Act (which stands for "Setting Every Community Up for Retirement Enhancement") was enacted at the end of last year and makes several significant changes to the laws governing retirement accounts. The changes noted below will have consequences for both retirement and estate planning.

1. End of "Stretch" IRAs

Prior to the enactment of the SECURE Act, an individual who inherited an IRA could "stretch" the IRA over his or her life expectancy, allowing the funds to continue to grow on a tax-deferred basis. Effective January 1, 2020, the SECURE Act ends the "stretch" IRA for many individuals and provides that a beneficiary must withdraw all funds from an IRA account within ten (10) years from the date of death of the IRA owner (the "10-year rule"), potentially accelerating the beneficiary's income tax liability.

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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