January 2020 News
Changes to Retirement Savings After
the SECURE Act of 2019

On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”). The underlying premise of the SECURE Act was to enhance individual retirement savings. It also professes to simplify the administration of our retirement system. Some of the basic features of the new law include:
•Increasing the beginning age for mandatory withdrawals from a qualified retirement plan from 70½ to 72;
•Repealing the maximum age for contributions to a traditional IRA;
•Limiting the “stretch” IRA to 10 years;
•Allowing individual small businesses to group together in establishing retirement plans which will benefit employees of the separate companies;
•Changing the requirements for part-time employees to be eligible to participate in an employer’s plan;
•Permitting employers to automatically enroll employees in the company’s retirement plan (substituting an “opt-out” system for the current system which requires an employee to take affirmative action to join his employer’s plan);
•Allowing penalty-free distributions from qualified retirement plans for births and adoptions.
According to the Insured Retirement Institute, the SECURE Act addresses “a deepening crisis where too few Americans are saving sufficiently to ensure an adequate income for their retirement years.” The Act resulted from a widespread belief that these reforms will increase individual access to retirement plans in the workplace, and thus expand retirement savings of all Americans.
From an estate planning perspective, one of the most important features of the Act is the limitation of the “stretch” IRA. The term “stretch IRA” refers to an inherited retirement account being able to be drawn down over the life expectancy of the beneficiary. Both the old and new rules do not apply to a qualified retirement account having a spouse as beneficiary. When the spouse is beneficiary, the spouse can make an election to treat the IRA as his or her own, and even commingle it with an existing IRA of the spouse, through what’s called a “spousal rollover.” However, when a child or other individual is named as beneficiary, the account is treated as an “inherited IRA” and very different rules apply regarding distribution and taxation. This is where the SECURE Act made significant changes.

To learn more about the SECURE Act and how it may affect your estate planning, check out the full article here.

We have a few events coming up that you might want to add to your calendar!

March 27, 2020
TPC Elder Advocacy and Law Boot Camp

Come join us on March 27th for our next Elder Advocacy and Law Boot Camp! This event provides continuing education credit for nurses, social workers, and nursing home administrators. Even if you don't need continuing education credit, it is sure to be an informative event with lots of helpful information about aging-related issues. Mark your calendars! More information coming soon!

May 1, 2020
TPC's 10 Year Anniversary Celebration

We have a big birthday coming up this year! Join us on May 1, 2020 as we celebrate our 10th birthday! Details coming soon!

Did you know we have a blog? TPC Attorneys and Staff share information covering a wide variety of topics. Check out our latest blog from TPC paralegal, Barbara Armstrong, here .

Recipe of the Month
It's finally cold outside. The best thing on a cold day is a warm bowl of homemade soup. Check out this hearty winter minestrone soup if you're looking for something to warm you up! Click here for the recipe!
Last month, we focused on scams targeting seniors. Sadly, this is something that is happening every day across America. Seniors are being targeted by tech support scams, bogus prize promotions, and scammers who impersonate family and friends. Regardless of whether or not you have been personally targeted, this is a great time to educate yourself and your loved ones on this ongoing issue. For more information about senior scams click here .
Happy New Year from TPC!

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Helena S. Mock, Esq.

461 McLaws Circle, Suite 2
Williamsburg, VA 23185 
Phone: 757-969-1900