PITTSBURGH CPA/ATTORNEY JAMES LANGE PRESENTS:
How IRA and Retirement Plan Owners Should Respond to the
SECURE Act, COVID-19 and the CARES Act
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), which became law effective January 1, 2020, contains a provision that could be financially devastating for the children and grandchildren of IRA, 401(k) and other retirement plan owners.
The ticking time bomb is the provision that radically modifies the required minimum distribution (RMD) rules for Inherited IRAs and retirement accounts. Subject to some exceptions, an Inherited IRA or retirement plan will have to be distributed and taxed within 10 years of the original owner’s death. This forced income tax acceleration will decimate the savings and undermine the long-term financial plans of many hard-working retirement plan owners and their families.
What might it mean to you?
Consider the following scenario: On the morning of December 31, 2019, two elderly men in poor health who each have exactly $1,000,000 in their IRAs are admitted to the hospital. The first man dies within an hour of being admitted to the hospital. The man second dies the following afternoon—January 1, 2020. Each of the men bequeathed his $1 million IRA to his 45-year-old daughter. Both of these women earn the same amount of money. They retire at exactly the same time. They receive identical Social Security benefits. They even have identical annual expenses. In fact, in terms of income and spending, these women behave identically. However, at age 86 the first man’s daughter has $2,236,583, and the second man’s daughter is broke.
That jaw-dropping difference—in our hypothetical example—is an all-too-real possibility for the children of millions of IRA and retirement plan owners. What a difference a day makes.
This webinar draws on Mr. Lange’s more than thirty years’ experience as a practicing estate attorney and CPA and his depth of research and analysis. For all those years, Jim has trained his laser focus on the unique planning requirements and opportunities for IRA and retirement plan owners. He clearly identifies the problems and opportunities generated by the passage of the SECURE Act and offers his exceptional strategic solutions to these challenges. In response to the ongoing and unprecedented COVID-19 global health crisis, this webinar has been updated to include tax-savvy responses to the recent economic downturn and the Coronavirus Aid, Relief, and Economic Security Act (CARES).
James Lange
James Lange is a 7 time best selling author and his upcoming book is all about beating the new death tax. Jim was one of the first IRA experts in the country to address the impending death of the stretch IRA.
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