Blog Post

As of January 1 of this year, changes were made to U.S. tax laws that may require those with an IRA, 401(k) or 403(b) to update their estate plan. The Setting Every Community Up for Retirement Enhancement (SECURE) Act made significant changes to retirement account rules that will require many people to update their beneficiary designation forms, and in some cases, living trusts.

The attorneys at Fraxedas Law encourage clients to schedule an appointment to update their estate plan to ensure their wishes are carried out.

The Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the SECURE Act, which originally passed the House in July, was approved by the Senate on Dec.19, 2019, as part of an end-of-year appropriations act and accompanying tax measure, and signed into law on Dec. 20 by President Donald Trump. The far-reaching bill includes significant provisions aimed at increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets.

KEY TAKEAWAYS

• The SECURE Act became law on Dec. 20, 2019.
• The SECURE Act will make it easier for small business owners to set up “safe harbor” retirement plans that are less expensive and easier to administer.
• Many part-time workers will be eligible to participate in an employer retirement plan.
• The Act pushes back the age at which retirement plan participants need to take required minimum distributions (RMDs), from 70½ to 72, and allows traditional IRA owners to keep making contributions indefinitely.
• The Act mandates that most non-spouses inheriting IRAs take distributions that end up emptying the account in 10 years.
• The Act allows 401(k) plans to offer annuities.

The Bottom Line: Whether the SECURE Act ends up being a retirement game-changer or not remains to be seen. But one thing is abundantly clear: The current rules aren’t allowing nearly enough Americans to put away the nest egg they’ll ultimately need for a secure retirement.

Call Fraxedas Law and let’s talk about how we can get you set up – or your family and heirs – for success.

Contact us today for a free consultation. 561.288.9788

Robert Fraxedas

Robert Fraxedas is an accomplished attorney with 15 years of legal experience, focusing on estate planning, probate, elder law, and business planning. In 2002, Mr. Fraxedas graduated cum laude from the University of Florida with a bachelor’s degree in philosophy. There he was a National Merit Scholar and a member of the esteemed Phi Beta Kappa Honor Society. In 2005, Mr. Fraxedas graduated from the University of Florida’s Levin College of Law. After practicing for 10 years, Mr. Fraxedas obtained his LL.M. Degree in Estate Planning from the University of Miami School of Law, graduating cum laude.

Mr. Fraxedas is an experienced, knowledgeable and hardworking attorney who cares deeply about his clients. He will get to know you, your family, and your goals and develop a personalized plan that is tailored to meet your needs. Whether it’s a simple will, a complicated probate, crafting a trust for your children, or obtaining Medicaid or other government benefits, Mr. Fraxedas is committed to taking care of you and your family as if it were his own.