TOPEKA, Kan. (KTMJ) — The SECURE Act (Setting Every Community Up for Retirement) went into effect in early 2020, but with the onset of the pandemic may have slipped the minds of many people.
Chris McGee, managing director of McGee Franklin Financial Group of Wells Fargo Advisors of Topeka, talked to FOX 43’s Erin La Row about some of the bigger changes coming from the Act.
He said one change for retirees or people getting ready to retire is the age when you have to start taking money from your retirement plan. This is known as the Required Minimum Distribution or RMD. The RMD age is now 72, up from 70 1/2. This change, McGee says, can give your investments longer time to grow.
Another change affects beneficiaries of IRAs and other qualified plans. Beneficiaries now must distribute all assets from those plans by the end of the 10th year following the owner’s death. This change means beneficiaries don’t have to touch the assets in the first nine years, but then would have to take out all of the funds in year 10.
Another highlight includes help with educational expenses. McGee said you can use 529 educational saving accounts for repayment of qualified student loans and registered apprenticeship programs, up to $10,000 lifetime.
For more information about the SECURE Act or to talk through your current financial situation, call McGee Franklin Financial Group at (785) 271-2518 or visit their website.
McGee Franklin Financial Group is a paid sponsor of FOX 43 AM Live and is responsible for this content.