Feeling confused about what the SECURE Act means for you and your RMDs? Don will talk you through what you need to know and help you figure out whether you’ll need to take RMDs sooner or later.
Click play to listen to the episode…
When you reach a certain age, you are required to take RMDs (required minimum distributions) out of your retirement plan. Under the old plan, this age used to be 70 and a half, but with the new SECURE Act it starts at 72. So why is this causing confusion?
For the people about to take their RMDs, when will the SECURE Act go into effect? How do you know if you fall under the old rule of 70 and a half or 72 years old to take RMDs? We’ll look at some people in pop culture to get a better idea of how this works. Did you know that Billy Joel and Bruce Springsteen were both born in 1949? Billy was born in May, while Bruce was born in September. Both musicians are 70 years old now, but their birth month will determine which rule they must adhere to.
You may think you have nothing in common with Bruce Springsteen (other than maybe the same home state), but if you’re a baby boomer born after 1949 then you share the same RMD age of 72. Make sure though that you check with a financial advisor to follow the correct RMD age. Don works with the Ed Slott Group to stay informed on the laws and issues related to IRA planning.
In this episode of Your Money and Your Life, Don also answers a question about the “widow’s tax” and how that would impact someone’s taxes following a loss of their spouse. He will talk through a few ways to prepare for a potential tax ahead of time and protect your assets.
Listen to the full episode to find out if you are more like Billy or more like Bruce or click on the timestamps below to hear a specific segment.
1:38 – The SECURE Act is making people feel insecure about their RMDs.
2:57 – Are you more like Billy Joel or like Bruce Springsteen?
7:44 – How does Don help clients navigate these changes?
10:08 – Cash Connection Question: Can you explain the widow’s tax?
13:41 – Is there anything that can be done ahead of time to prepare for this tax?
17:02 – Getting to Know You: How does Don start the day
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Donald W. Cash – CPA, CFP® is an independent advisor. Don began his career in 1985 as an accountant after graduating Rutgers University. In 1990 he entered the field of Estate Planning with a concentration in long term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs. He advoctaes a holistic approach to Estate and Financial Planning as has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers. Don is married to Cathy and have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.