Retirement planning

The SECURE Act – the Gift That Keeps On Giving

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Sign saying minimum and maximum - SECURE Act in Fort Worth TX

The SECURE Act of 2019 altered the landscape for IRAs significantly when signed into law. Just when advisors gained a level of comfort with the SECURE Act, the United States Treasury Department issued Regulations in early 2022 requiring RMDs under the 10-year Rule in years 1-9. After realizing that many individuals were unaware of that requirement, the Internal Revenue Service responded by issuing Notice 2022-53 suspending the requirement to take RMDS in 2021 and 2022. SECURE 2.0 came at the end of 2022 ushering in some welcome changes but adding unnecessary complexity to our retirement world by increasing the age at which certain individuals needed to begin taking RMDs. Individuals born in 1951 found themselves in the unusual situation of having taken what they thought were RMDs in 2023 required under SECURE before realizing that SECURE 2.0 delayed their RBD. For some, that meant a distribution from the IRA that was not an RMD, but for which the usual 60—day roll over deadline had already expired. The IRS issued Notice 2023-54 in response.

Understanding the Medicaid Five-Year Look-Back Period

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Understanding the process of Medicaid eligibility and the look-back period is crucial, especially when planning your estate. One of the most essential aspects of Medicaid planning involves what’s known as the “look-back” period. For the residents of Texas, this look-back period extends five years.  What is the Five-Year Look-Back Period? The five-year look-back period is … Read more

Your Ex-spouse May Get Most of Your Assets

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Nowadays, divorce is a common occurrence. In 2020, the National Center for Health Statistics reported 2.1 divorces per 1,000 in Texas. If you have gone through a divorce and remarried, it is crucial to update your estate planning documents to reflect your changed circumstances. Failure to do so can lead to a nightmare scenario for … Read more

What You Need to Know About SECURE Act 2.0

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IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly. Just when advisors began to get comfortable with the new 10-year rule, the United States Treasury Department promulgated proposed Treasury Regulations early in 2022 adding additional complexity to that rule by requiring annual distributions for a non-EDB of a participant who died after their Required Beginning Date. Once again, the SECURE Act includes additional provisions with which every advisor should be familiar.

How Do Millionaires Do It?

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There are now 13.61 million American households with assets over $1 million, excluding their homes and retirement funds.  Dr. Larry Samuel of the consulting group Culture Planning breaks them down into five basic groups: Thrillionaires.  These millionaires live on the edge, consuming conspicuously.  They’re more likely to be found rolling the dice in Las Vegas … Read more

Just When You Thought You Understood the 10-Year Rule, Think Again

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IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that and instead require annual distributions for any beneficiary subject to the 10-year rule.

Application of the Updated Life Expectancy Tables

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Since the creation of Individual Retirement Accounts in 1971, they have become an increasingly important part of a well-balanced Estate Plan. Taxpayers contribute to the IRA. Upon attaining a certain age, the taxpayer begins taking distributions based upon tables promulgated by the Internal Revenue Service. The Internal Revenue Service recently updated those tables which will significantly impact certain taxpayers

A Trust Can Help Protect You from a Financial Crisis

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Compliments of the McGee Law Firm, Attorney Brandon McGee Recently, there has been tremendous turmoil in financial markets and financial institutions. This leads many to ask whether their accounts are safe. Now, more than ever, it is important to protect yourself and your loved ones from the uncertainties in the world.  You can start with … Read more