Dear Client,
The team here at Brophy Wealth Management, LLC wishes you a Happy New Year! We have spent the last several days researching the changes made by the new major retirement and tax law passed at the very end of the year. It is popularly called the SECURE ACT 2.0, and you may be hearing about it in the news. This law is estimated to make over 100 changes to its recent predecessor (now cleverly named the SECURE ACT 1.0), which was passed in 2019. We already sent out a reference email last week with a few of the law’s updates and will continue to send information on the changes over the next few weeks.
This email references explicitly how this law will change your Required Minimum Distribution (“RMD”) age. If you were born in 1950 or earlier, you must continue taking your RMD. If you were born between 1951-1959, your new RMD starting age is 73, AND YOU DO NOT HAVE TO TAKE A DISTRIBUTION THIS YEAR. Finally, if you are fortunate enough to have been born in or after 1960 will have a new RMD starting age of 75!
Your dedicated Wealth Manager will discuss with you how this impacts your current income plan. We will likely continue taking distributions from your IRA as planned, but we will let you know if any changes are warranted.
Regards,
Your Brophy Wealth Team