It’s critical to pay attention to the changes brought about by the SECURE Act for your own sake and the sake of your clients.

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On December 20th, 2019, Former President Donald Trump signed into law the Setting Every Community Up for Retirement Enhancement Act, also known as the SECURE Act.   Despite what its name suggests, the SECURE Act does NOT enhance retirement for the people. The only thing it secures is more money for the government.   The largest pool of monies available to tax is in the retirement accounts of wealthy and middle-class Americans, and the government knows it. The legislation aims to chip away at IRAs, 401ks, 403(b)s, 457s, SEPPs, Simples, and any other tax-qualified retirement plans.

But, there’s an opportunity here.

Through the Protected IRA Plus Program, you can help your clients more than ever before and discover how to make this situation a win-win for everyone:
  • Gain new access to assets to capture under management 
  • Turn dead assets into live assets to begin producing income for both your client
  • Get paid to perpetuate and protect your renewals and fees
Before we discuss the Protected IRA Plus Program, let’s understand how the SECURE Act enables the government to take away more money at a faster rate than ever before.  
  1. The mandate that inherited retirement accounts, including Roth IRA’s, with a non-spouse beneficiary, be distributed, and therefore taxed, within ten years after the account owner’s death. 
With no more stretch IRA strategy or the transfer of wealth across generations, the growth of the retirement account over time is not only impeded, but it becomes a tax burden for the beneficiary. Since payees are pushed into a higher tax bracket, the gift of inheritance becomes a 10-year tax curse with fewer exemptions and deductions and progressively higher taxes.   Taxes are historically low right now, but the current administration plans to tax highly compensated people even more to equalize the playing field. Taxes are going up for the population we are talking about, and the market is unpredictable.   
  1. The extension of the RMD age from 70 ½ to 72 increases the amount of distributions clients will take, thus pushing their taxable income even higher. 
Extending the RMD age makes seniors take larger RMDs later in life as taxes will be higher then. Our population will defer and end up paying out more in income taxes in future years.  

It’s our responsibility to ensure our clients’ protection for whatever life has in store, and the Protected IRA Plus Program is our answer to that. 

In the next video, we’ll see how the numbers compare between the Protected IRA Plus Program and two other common investment strategies.

Himmelstein Financial©