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New laws and your impacted retirement

January 8, 2020 | TS Prosperity Group

Hopefully the New Year is starting on a positive note for you! We want to keep you informed on some new legislation that may impact you in retirement, may impact the tax implications for your family with any Individual Retirement Accounts (IRAs) left behind, or may assist your retirement further.

In December of 2019, a piece of legislation called the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) passed Congress and was signed into effect. The most important provision of this Act was the removal of the stretch required minimum distribution (RMD) provisions, meaning after the owner of an IRA passes, a non-spouse beneficiary must deplete that inherited account within 10 years. Before this change the beneficiary could take money annually based on their personal life expectancy. Now with the change, this can create higher RMDs while beneficiaries are in their working years, creating higher tax burdens to them.

The SECURE Act also delays the age of which RMDs must begin. Before in place, anyone age 70.5 would need to begin taking their RMD. Now as long as an account owner has not attained age 70.5 before the end of 2019, that age is 72. This, coupled with pending IRS rules around RMD factors, will reduce the amount of money retirees need to withdrawal each year in retirement due to the RMD rules.

The last main change that may or may not impact you is the ability to continue saving after age 70.5. Historically, once you reach that age you could no longer contribute to a Traditional IRA. Now for those still working, the savings limitation has been repealed to assist for retirement further.

While there are additional changes, and not all of these changes may impact you on a personal level, we believe it is our job to help keep you informed and up-to-date on these large impactful modifications. At TS Prosperity Group we are able to help you plan accordingly for what to do with your personal accounts, or any inherited accounts you may receive in the future. Similar to other institutions, we offer rollover retirement accounts along with Roth IRA conversion assistance. As part of our banking family, you have access to our team of professionals with the knowledge and commitment to meet your needs.

At TS Prosperity Group, we IGNITE PROSPERITY® by helping our clients do more with their money. Whether it’s saving a little extra cash each month or accomplishing a long-term strategy, our goal is to help you transform your financial life. Call and schedule an appointment today, one of our team members would love to help you do more with your money at TS Prosperity Group. TS Prosperity Group is based in Council Bluffs, Iowa, with clients across the midwest. For more information visit tsprosperitygroup.com or call 844-487-3115. #igniteprosperity


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Cody Forbush, CFP®
Investment Strategist, AVP

Cody joined TS Prosperity Group in 2017. As an Investment Strategist, Cody sits on the Investment Committee and helps with the research, investment recommendations, and portfolio construction. His role also includes taking the message from the Investment Committee and delivering it to the client in a way that makes sense.  He does also does all of the financial planning for TS Prosperity Group clients.  Cody comes from a rural farming community in Idaho. He earned a Bachelor’s degree in Business Administration with an emphasis in Investment Science and Portfolio management from the University of Nebraska at Omaha (UNO).  He also completed a MBA degree from UNO with an emphasis in Risk Management. Cody is CERTIFIED FINANCIAL PLANNERTM. His work experience includes assisting high net worth clients plan around their goals, and developing an all-encompassing strategy to help accomplish those goals.