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Big Changes Coming to your IRA

The federal government spending bill has been signed.  The bill includes The Secure Act which has many changes for your retirement savings rules.  We have provided some of the highlights of the bill and how to get assistance.

Last week, Congress passed and the president signed, the federal government spending bill. Within the bill there are many items that will have an impact on taxes. Below are some highlights that may have significant importance to you as a taxpayer as well as some links to articles that provide a broader overview of everything included.


  1. Increasing RMD age from 70½ to 72
  2. Inherited IRA distributions to span only 10 years (non-spouse)
  3. Decrease AGI for medical expenses from 10% to 7.5%

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) will have an impact on many Americans. Two of the features of this act include increasing the age that individuals will have to begin required minimum distributions from 70½ to 72, and also repealing the maximum age (70½) for IRA contributions. These changes will give individuals more flexibility if they are continuing to work and also better options for tax planning. Please note, this only applies to individuals who turn 70.5 in 2020 or later. If you have already started taking your required minimum distribution or even delayed taking your first RMD until 2020 you must continue to do so and the new age rule of 72 does not apply to you.

A much less popular feature of the bill is the acceleration of the time frame certain beneficiaries of IRAs have to withdraw money from inherited accounts. In the past beneficiaries have been able to take minimum distributions over their lifetime. Under the new rule, these distributions will have to be taken within ten years of the inheritance. This will result in larger distributions per year and significant tax consequences. This rule does not include surviving spouses, minor children or people with disabilities. These three groups will currently remain exempt from this change.

In addition to the major changes impacting retirement accounts, the bill also extended some previously expired tax provisions. One impactful extension is the bill has reverted back to the 7.5% adjusted gross income limitation for medical expenses which had previously been increased to 10%. This could create a change in the number of taxpayers itemizing their deductions vs. taking the standard deduction.

These are just a few highlights from the spending bill. As with any change, it is important to discuss all future planning strategies with your financial team. Please call Alexis Meeks, CPA at Hippo Tax Services for a more details.

More information is available at:



Please check with your tax advisor, your Curran Wealth relationship manager,
 or contact Curran Wealth Management if you have any questions.

The material contained in this article is for educational and informational purposes only.  The information herein is considered to be obtained from reference sources deemed reliable, but no representation or warranty is made as to its accuracy or completeness.  This article is not, and should not be regarded as “investment advice” or construed as a “recommendation” or an offer to buy or sell a security.  The information contained in this article may not apply to your personal circumstances.  Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation.  Information on taxes is based on the tax laws existing at the time of publication.  Tax laws are subject to continual change.  In addition, tax laws vary by state.  This article is not, and should not be regarded as tax or legal advice.  We cannot ensure tax consequences of any transaction.  If you would like a detailed analysis of your tax situation, with specific tax recommendations, you can discuss the possibility of pursuing a formal relationship with Hippo Tax Service, LLC.