Our Services
The Founders
Speaking Engagements
News & Information
Financial Briefs
Articles Of Interest
Featured News
Market Data Bank
Stock Quotes
Problem Solvers
Client Forms
Helpful Websites
Contact Us
Directions
Home
More Articles  Printer Friendly Version

 

Don't Be Deceived By New Tax Law's Name

With tens of millions of Americans desperately seeking security in retirement, Uncle Sam should have been more careful about how he named the new tax law, known as the SECURE Act. Instead of co-opting the names of federal laws for marketing purposes, the U.S. government should be able to figure out how to name a new law that skirts the standards in federal truth-in-advertising regulations.

Gaming the name of the Setting Every Community Up for Retirement Enhancement Act, so it can be abbreviated "SECURE," misleads retirement investors. The SECURE Act increases fairness of rules governing federally qualified retirement plans -- IRAs, Roth IRAs, 401(k)s, and other federally tax-deferred retirement accounts. It's loaded with technical corrections and would be better named, "The 2019 Technical Corrections Act For Retirement Investors," or something as instructive to taxpayers.

Consumers should not be required to read between the lines to figure out how the name of a tax law about retirement investing affects them. The names of tax laws should meet plain-English standards imposed by the government's own truth-in-advertising rules. They should at least hint at whether a law will save taxpayers and their heirs from overpaying the IRS on retirement income annually, materially and needlessly, or cost them more.

The SECURE Act is a highly technical area of tax and financial planning, and minimizing its effects requires analysis of your personal situation, but don't let the acronym fool you. The SECURE Act's effects sweep across rules that could allow you to delay required minimum distributions from qualified accounts an extra 18 months, to age 72 instead of 70½, which has been a huge bonus to baby boomers nearing retirement, as well as those in the retirement account decumulation and withdrawal phase of life.

The SECURE Act does not do much to make your retirement more secure. In fact, failing to plan for its myriad technicalities affecting Roth IRA conversions, new limits on inherited federally qualified accounts, and the benefits of life insurance is liable to make your retirement less secure. Don't be deceived.


This article was written by a veteran financial journalist. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.


Email this article to a friend


Index
China Poses A Hidden Risk For Many 401(k)s
Growth Of The Consumer Class And The Investment Outlook
Exceptions To The New Rule On Inherited IRAs
Repeated Tax Reforms Raise The Risk Of Doing Nothing
Boomers Working Past Age 65 Are A Surprise Boost
Study: Wall Street's Tactical Methodology Isn't Working
Three Major Investing & Tax Planning Trends For 2020
SECURE Act Is Law: Last Call For 2019 Tax Savings
Performance Anxiety: A Leading Cause Of Investor Dysfunction After Age 55
How Worldwide Demographics Affect Your Portfolio
Financial Lifeboat Drill For Mustering In Emergencies
Hiddenomics™ Challenge: Find The Leading Economic Indicators
20-Second Year-End Tax Planning Quiz For Pre-Retirees
Last Chance In 2019 For Pre-Retired Professionals & Biz Owners
The Fed Just Cut Rates Again; What's It Mean To You?

This article was written by a professional financial journalist for The Dover Group and is not intended as legal or investment advice.

©2020 Advisor Products Inc. All Rights Reserved.
Financial planning provided by Williams Advisory Services, LLC, a Registered Investment Adviser.
This message is intended for the use of the person(s) to whom it is addressed.
It may contain information that is privileged, confidential, proprietary, and/or exempt from disclosure under applicable law