Client Updates

U.S. Tax Reform: SECURE Act

A new law affecting retirement plans took effect on January 1, 2020. A major component of this legislation, known as the SECURE Act (short for Setting Every Community Up for Retirement), eliminates the ability of many beneficiaries of inherited IRAs to “stretch” required minimum distributions over the beneficiary’s lifetime. Clients are invited to contact us to discuss whether adjustments to their estate plans or beneficiary designations are advisable in response to this significant change in the law.

U.S. Tax Reform: ESTATE TAX

Congress approved and the President signed into law a massive tax reform package, which took effect on January 1, 2018. Part of this tax bill increases the estate and gift tax exemptions to $11,580,000 per person in 2020 (indexed for inflation). Barring future legislation, these higher exemptions will remain in place through 2025, then decrease by approximately half in 2026. Given the tax bill, estate plans may need to be updated or revised. As always, our clients are invited to contact us to discuss how these latest tax developments might affect their individual planning.