If you are retired or nearing retirement, you may want to pay attention to the SECURE Act that went into effect January 1st of 2020. This act made a number of important changes to retirement account rules, including:
- Raising the minimum distribution age to 72 (Was previously 70 and a half)
- Removing the age limit for contributing to an IRA, as long as you are still working.
- If you inherit an IRA, you now must withdraw the assets within 10 years (though there are various exceptions including one for surviving spouse).
- New parents can take a penalty-free $5,000 withdrawal from an IRA or 401k after the birth of a child (though you do need to pay income tax if you don’t repay the funds).
Do you have questions about tax law changes? Pro Advisor support is there for you. Visit our website at https://www.clergyfinancial.com/resources/proadvisor/ for more information about scheduling a Pro Advisor consultation.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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