The SECURE Act was a big deal when it was passed in December of 2019. However, just a few short months later Covid-19 hit and the CARES Act was passed.

Most people never had a chance to incorporate the SECURE Act into their retirement plan before dealing with the pandemic and the CARES Act. Although somewhat forgotten, the SECURE Act remains and is still significant. This article will refresh you on some things to keep in mind.

Required Minimum Distribution (RMD) Age Raised

Prior to the SECURE Act, RMD’s were supposed to start by April 1 of the year following turning age 70.5. Now, you are required to start by April 1 of the year following the year you turn 72.

There is no change if you were already taking RMDs, although there is a pause in 2020 as a part of the CARES Act. This later RMD age provides a longer window to take advantage of certain tax planning strategies in retirement, namely Roth conversions.

Traditional IRA Contributions Beyond Age 70.5

Before the SECURE Act, though you could still make Roth IRA contributions past age 70.5 if you had earned income, you were not allowed to make traditional IRA contributions. Now you can as long as you otherwise qualify.

Tax deductions can be crucial in retirement when planning around Social Security taxation and Medicare surcharges. Now, in 2020, an additional $7k is available in deductions to those with earned income.

This also allows high-income retirees to continue to do non-deductible IRA contributions that can be converted tax-free into a Roth IRA in the future.

Qualified Charitable Distribution (QCD) Reduction

A QCD is still allowed once you turn 70.5 and can be an incredible tax strategy for retirees who don’t itemize anymore and therefore do not get a tax benefit for their charitable donations. The QCD preserves the tax benefit but is now reduced if you make Traditional IRA contributions.

A Roth IRA contribution can make more sense compared to a Traditional IRA if you are pursuing the QCD strategy.

Changes to the Stretch IRA (Beneficiary Types)

Most IRA beneficiaries used to have RMDs but could take these distributions over their own lifetime. Now, there are no RMDs, but the entire account must be empty by the end of 10 years.

Of course, there are some exceptions. You can still use the lifetime stretch if you are a surviving spouse, minor child (of the account owner, not grandchildren), disabled, chronically ill, or not more than 10 years younger than the IRA owner.

If you become a beneficiary, make sure you do proper tax planning to evaluate the best way to empty the account over the next 10 years.

If you have IRAs and employer plans, it is time to re-evaluate your estate planning documents to make sure they still achieve your wishes in a tax-efficient manner.

If you inherited an account prior to 2020, then you can continue the stretch over your lifetime, but you don’t have to take one in 2020 due to the CARES Act.

Student Loan Expenses – for Your Kids and Grandkids

The student loan expenses option isn’t necessarily retirement-related but may be crucial for someone in your family. The SECURE Act made it possible for you to use a 529 plan to pay for student loan expenses (principal or interest). The lifetime maximum is $10,000.

Don’t have a 529 plan? That’s okay because anyone can open one and contribute to it even after college. This can make sense for those in states that offer a state tax deduction for contributions.

Be sure to coordinate this with a tax professional because not all states are on-board with this strategy even though the IRS is. Also, the interest can’t be counted as an eligible expense if it is deducted on the tax return.

Between Tax Reform in 2018, the SECURE Act in 2019, and the CARES Act in 2020, there is a lot to revisit when it comes to your money, especially around taxes and retirement.

Download Robert’s e-book 9 Mistakes to Avoid When Retiring Solo for more retirement guidance from a Fee-Only advisor.

Did you make use of the SECURE Act before Covid hit the U.S.? Had you forgotten about it? Which benefits are use using? Please share your experience with the community.

Bethenny Frankel’s Summer of Love Swimsuit on Instastories

Bethenny Frankel Instagram Fashion 2020

According to Instagram it definitely appears as though Bethenny Frankel has been having a summer of love; and not only by spending lots of time in Massachusetts with her boyfriend Paul of course, but also with her super cute “Summer of Love” white swimsuit. And tbh, we really can’t think of a more appropriate thing for her to wear while riding yachting off into the sunset.

Fashionably,

Faryn

Click Here to Shop Her Sundry Swimsuit on eBay

Photo: @BethennyFrankel

Originally posted at: Bethenny Frankel’s Summer of Love Swimsuit

Lindsay Hubbard’s Budweiser Tee on Instagram

Summer House Instagram Fashion 2020

If you’ve been wondering what Summer House’s Lindsay Hubbard has been up to lately, well according to Instagram she’s just been spending time chillaxing with a nice, cool Budweiser…tee. Which we’ve of course linked for you guys to shop right now down below, along with some even more affordable Style Stealers for those of you with champagne beer taste on a beer budget.

Fashionably,

Faryn

Click Here to Shop Her Junk Food Tee

(It Looks Like She Cut Hers to be Cropped)

Click Here For Info on Her Hat

Photo: @LindsHubbs

Originally posted at: Lindsay Hubbard’s Budweiser Tee

We’re used to seeing Tiffany Haddish change up her hair, going from a sleek bob to a flirty ponytail. This new look is a bit different but just as gorgeous. Haddish shaved her head on Instagram in an almost-27 minute video. She took scissors and went right for her faux-locs. Her friend and hairstylist Precious is in the background having a bit of anxiety but Haddish has no concerns. “They’re acting like this shit isn’t going to grow back,” she says. She notes that she’s been talking about shaving her head for years but everyone has been “blocking it.” Not anymore.

Hairstylist Lacy Redway commented on her support for Haddish, saying “You finally did it!…Hair doesn’t define us and you know we got the wigs on deck if we choose to.” As an actress, that’s of course something Haddish is thinking about as she tells Precious she’s wearing a wig in an upcoming move. So, don’t worry! Once the locs are out, she says: “I look beautiful. I am beautiful.”

Source: Instagram

Haddish comes back online to make another video to respond to critics whose comments she saw or she knows she’s about to see. “Why, when a woman decides, ‘Hey I’m going to cut this hair off because I want to see my scalp,” she got to have a mental problem. Nothing is wrong with my brain,” she says. “I’ve literally been talking about this for years. I want to see my scalp. I know every part of my body, where every single mole is.”

Source: Instagram

Precious helped Haddish clean up her hair with clippers, cutting it close to the scalp. The actress would look good with literally any hairstyle but there’s something especially gorgeous about a shaved head on her. “Just imagine how much time I’m going to save!” she says.

Source: Instagram

Watch all three videos in their entirety to laugh, feel inspired and wish Haddish was your BFF.