Your Survival Guy

Preparing your investments and family for when disaster strikes.

Disclosure

  • Home
  • Your Survival
    • EMP Threat
    • Tucker Explains
    • Newport Gas Outage
    • Water
      • Emergency Water Storage
      • Let There Be Water
    • Get Your Gun and Your Training Now
    • Satellite Phones
    • Navy SEAL Survival Kit
  • Your Money
    • Coronavirus Infects Stock Market
    • Looking for a Better America
    • You Invest, They Win
    • Where to Keep Your Cash
    • Paris
    • How to Buy a Boat
    • Dead or Alive? The Future of Long-Term Investing
    • Is Vanguard too Big?
    • Cryptocosm and Life After Google
    • The Last Intelligence Report
    • The Truth Behind the S&P 500
    • RAGE Gauge
    • How Many “Retirees” Will Keep Working?
    • Your Retirement Life
    • You’ll Love This if You’re Dreaming of an Active Retirement Life
  • Weapons
    • Self Defense
    • Every Family Should Own at Least One Shotgun: Here Are Three
  • About Me
    • Preparing for Times Like These
    • My Videos/Pics
    • Music
      • RIP Neil Peart: You Will Always Be Remembered as a “Modern-Day Warrior”
  • You
    • Our Cabin on Kodiak, Alaska
    • If You Are in Pain, this May Help. It Helped Me.
    • How to Save for a Grandchild
    • FIRE! Financial Independence, Retire Early
    • Compound Interest
    • Arithmetic of Portfolio Losses
    • Maximum Portfolio Withdrawal Rate
    • An Efficient Frontier
    • Retirement Compounders
    • Counterbalanced Total Returns
  • Survive & Thrive
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • Welcome

SECURE Act Passed by Congress on the Way Out the Door

December 20, 2019 By E.J. Smith - Your Survival Guy

By Orhan Cam @ Shutterstock.com

You’ve read about the SECURE Act and the hidden taxes targeting your family that it contains. Now, while everyone is busy Christmas shopping, and just as Congress is about to leave town, the bill was smuggled into a spending bill, and pushed through the legislature.

According to Barron’s the bill “means a spate of changes for retirees related to their required minimum withdrawals, the way they use IRAs, and rethinking estate planning options.” Reshma Kapadia reports on the bill for Barron’s writing:

The Setting Every Community Up for Retirement Enhancement—better known as the Secure Act—has been in the works for roughly three years and has enjoyed bipartisan support, despite being stalled for years. As of last week, many policy watchers didn’t expect it to get passed given the flurry of other issues consuming Washington, D.C. But different pieces of legislation often are attached to must-pass appropriations bills at the last minute, and that is what has happened. “It is always good to be attached to the last train leaving the station in Washington, which is what this budget bill is. It has to be passed by Friday, when there will be a government shutdown,” says Shai Akabas, director of economic policy at the Bipartisan Policy Center. “Even amid impeachment debates, this will be an extremely huge priority for Congress.”

Especially disconcerting are the SECURE Act’s changes to the Stretch IRA, and its allowance of fee-loaded annuities in 401(k) plans. The Wall Street Journal explains both changes in a Q&A by Anne Tergesen here:

Q: What are the new rules for people who inherit IRAs or 401(k)s?

Currently, people who inherit Roth and traditional accounts can often stretch required withdrawals—and make associated tax payments—over their own lifetimes, a technique known as the “Stretch IRA.” The legislation would require those who inherit from people who die after Dec. 31, 2019, to take the money out and pay any taxes due within a decade.

The bill exempts some beneficiaries, including surviving spouses, who can still stretch the distributions—and tax payments—over their lifetimes.

401(k)s

Q: The new law makes it easier for employers to offer annuities in 401(k)s. But annuities often have high fees. Should I avoid them?

Annuities, which make it easier for retirees to convert their retirement savings into a steady lifetime income, can make sense for retirees unable to cover their basic living expenses with Social Security and other forms of guaranteed income, such as pensions, said Mr. Slott.

But annuities generally have higher fees than mutual funds do, and so they reduce workers’ returns by more.

Workers should benefit from their employers’ ability to obtain lower group prices on these contracts. United Technologies Corp. , a Farmington, Conn., company that builds products including aircraft engines, added a variable annuity with an income guarantee to its 401(k) plan in 2012. The price for the guarantee, which is available in the $29 billion plan’s target-date funds, is 1.18% a year. When investment fees are added, the total cost is about 1.26% a year, versus a typical total cost of over 3% for a comparable annuity in the individual market, according to Morningstar.

Read more here.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy Facebook profileMy Instagram profile

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com
My Twitter profileMy Facebook profileMy Instagram profile

Latest posts by E.J. Smith - Your Survival Guy (see all)

  • RECONSTRUCTION: The Confiscation of All His Property - April 13, 2021
  • Inflation? Yes. - April 13, 2021
  • FORENSIC REPORT: Major Miscounting in Michigan. NH Next? - April 13, 2021
  • Demography Is Destiny: You Will Rise and Stand - April 12, 2021
  • Fidelity Investments #1: Hires 4,000 Focuses on YOU - April 12, 2021

If you enjoyed this post, email it to a friend:

  • Email
  • Print
  • Facebook
  • LinkedIn
  • Twitter
  • WhatsApp

Related Posts

Trending

  • Biden Tax Hikes: I’m Here to Help, But Only if You’re Serious
  • Be Dangerous: Biden’s Progressive Puppeteers’ E.O. Gun Grab
  • One Word Explains the Worth of Your Neighbors’ House
  • Constitutional Carry: Another State Chooses Second Amendment Freedom
  • April RAGE Gauge: Are Your Bond Funds Dead or Alive?
  • You Need To Be Dangerous: Democrats Want You Harmless
  • It’s as Simple as 4%? No, Not Anymore
  • Your Survival Guy Stock: Witness This Dividend Miracle
  • You're Telling Me Friends Ask You This Question
  • Nightmarish New Tax Proposal in New York

YOUR SURVIVAL GUY MUST READS

  • A Lesson from Legends: “Don’t Confuse Activity with Achievement”
  • Survive and Thrive January 2021: Are You Ready for The Great Reset?
  • What Communist China Meant to Her
  • China Conducts Coordinated Mutli-Layered Suicide Drone Test
  • Rich Grandchild, Poor Grandchild
  • Jimmy Buffett’s: A Pirate Looks at 40
  • New Yorkers Flee to Suburban Islands in Droves
  • When Isn’t Money Tight? Read More to Find Out
  • You may Find this Video About COVID “Science” VERY Interesting…I Did
  • Rich State, Poor State Rankings: This One Tops New England
Only if You’re Serious
Second Amendment
See Who's Missing the Boat
Find Freedom in America
Great Reset
Financial Independence, Retire Early
Richard  Young Reports
Why Fidelity is Number One
The Best States for Survival
Pandemic Creates Virtual Panopticon
Emergency Water Storage
You Invest, They Win
Escape the City
How You Can Save Money for Your Grandchild
Why Vanguard is Too Big for YOU
Money 101
Island Life
Smith Family Robinson

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.