The SECURE Act PA Program (recap)

Local professional advisors explore key provisions of the 2019 SECURE Act, which was enacted to encourage Americans to save for retirement

On Wednesday, February 26, 2020, forty guests gathered at The Community Foundation to hear from three knowledgeable professional advisors about the implications of the SECURE Act on their retirement plans.

The Act, which stands for Setting Every Community Up for Retirement Enhancement, passed on December 20, 2019 and consists of several key changes to retirement savings and charitable giving options.

Panelists: View Bios Here
Susan Dupuis, Partner, Marcum LLP
Atty. Ingi Loorand, Reid & Riege, P.C. Attorneys
Peter Purcell, Wealth Management Advisor, TIAA, Investment Advisory Services

Moderator:
Sharon Cappetta, CAP®
Director of Development, The Community Foundation for Greater New Haven

(L-R) Panelists Peter Purcell (Wealth Management Advisor, TIAA, Investment Advisory Services), Susan Dupuis (Partner, Marcum LLP), and Atty. Ingi Loorand (Reid & Riege, P.C. Attorneys) View photos from the program

What We Heard: Key Provisions

It is likely that account holders will want to revisit their beneficiary and estate plans given the ten year payout window for heirs, as social and financial/tax consequences to inheriting larger, taxable payouts must be considered. Strategies may include creating charitable remainder trusts, increasing the number of beneficiaries on plans as well as using insurance products to create more after-tax legacy options.

IRA Age and Distribution Requirements

  • The age for mandatory distributions from Individual Retirement (IRA) accounts has been extended 18 months to age 72 for required distributions, and the act allows for contributions to IRAs by persons of any age with earned income. Prior to the law, contributions to IRAs were not allowed past age 70.5.
  • “Stretch IRAs” that allowed for non-spouse beneficiaries to be distributed over life expectancy were eliminated and the full distribution of retirement account assets in ten years is now required, although there are exceptions for minor and disabled children.
  • With regard to charitable giving, the IRA rollover provision remains in place where a person can direct their required minimum distribution to charity and not receive the amount as income. The total qualified charitable distribution limit of $100,000 remains, although that limit is subject to reduction for taxpayers over age 70.5 who are contributing to an IRA.

Small Business Incentives

  • Additional elements of the act create incentives for small business owners to set up IRA programs for employees, allow for certain part-time employees to participate in qualified retirement plans and expand penalty-free access to accounts for the birth/adoption of a child.


Read more about the Secure Act.

About The Foundation's Professional Advisor Program Series

Throughout the year, The Community Foundation hosts informational and networking events for professional advisors. Past topics have explored building charitable capital and investment strategy, structuring life income gifts using retirement plan assets and networking at a local microbrewery. The series invites guest experts to discuss topics relevant to trust and estate attorneys, wealth managers, and other advisors. Contact Sharon to learn more.