Last December was a typical year end that brought us wintery weather, holiday festivities, time with friends and family, and significant tax reform. Really, tax reform!? Yes, and if it feels a bit like déjà vu, that’s because it was nearly two years ago to the day another major tax bill was passed (read our summary of the 2017 TCJA here – https://bit.ly/2RpGCxf).

This time around, the changes were not as broad or substantial, but they will have an impact nevertheless. The graphic below highlights all of the major changes, but those that impact our clients the most center on new IRA rules effective January 1, 2020:

1. Inherited IRA’s for most non-spouse beneficiaries must now be distributed within 10 years (this does not apply to Inherited IRA’s already in place).

2. Required Minimum Distributions (RMDs) will now begin at age 72 (previously age 70.5).

3. Those over age 70.5 with earned income can now contribute to an IRA.

These changes could very well have a significant impact on your personal situation. Expect to hear more from your advisory team at the upcoming Annual Review meeting and throughout the coming year.