DuPage County Estate Planning Attorney for Retirement Plans

Lawyers Helping You Understand How the SECURE Act Affects Your Estate Plan in Wheaton and Lombard

There are a wide variety of issues to consider during the estate planning process. While you may think of your estate plan as consisting of decisions for what should happen after you die, you will also want to take steps to protect your financial security throughout the rest of your life. In addition to creating a will or trust to address how your assets should be distributed to your beneficiaries, you can also make sure you have a retirement plan in place that will provide you with income when you need it.

The attorneys of A. Traub & Associates understand the complex factors involved in creating a comprehensive estate plan, and we can advise you about your options and help you make the right decisions. We will work with you to make sure you have the means to support yourself throughout the rest of your life, and we can also provide elder law services and help you address what you would like to happen as you enter your golden years.

The SECURE Act and Retirement Plans

Some recent changes to federal law have affected the forms of retirement savings that may be available to many people, as well as when and how these savings can be used. The Setting Every Community Up for Retirement Enhancement (SECURE) Act was passed in December 2019, and it is meant to provide more Americans with access to retirement plans and ensure that elderly individuals do not outlive the assets they have acquired.

The SECURE Act has encouraged employers to offer retirement plans to more employees by providing incentives for employers who participate in these plans or who automatically enroll employees. In addition, employers can now offer retirement plans to part-time workers who have worked 1,000 hours in a full year or who have worked 500 hours in three consecutive years. Plan sponsors may also offer annuities as an option in workplace retirement plans.

Some other changes affect the ages at which a person can receive distributions from a retirement plan, as well as when they can make contributions to their retirement savings. Previously, a person had to begin withdrawing the required minimum distribution (RMD) from their retirement plan when they reached the age of 70.5, and they could no longer make contributions to a plan after reaching that age. The age limit for taking RMDs has been increased to 72, and there is no longer an age limit for making contributions. This means that a person can delay their retirement for longer, and they can continue adding to their retirement savings if they will be working part-time during their retirement.

One way the SECURE Act may affect estate planning involves the requirements placed on a person who inherits an IRA following the account holder's death. In the past, a non-spouse beneficiary could make withdrawals from this type of account throughout the rest of their life, but there is now a 10-year limit for when this money must be withdrawn. Those who have substantial savings in an IRA will need to consider this new time limit when deciding who should be the beneficiary of the account.

Contact Our Oak Brook Estate Planning Lawyers

When creating a comprehensive estate plan, you will want to be sure to consider your retirement savings alongside your other assets. By looking at the financial resources you have, you can determine the best ways to provide for yourself and your loved ones both throughout your lifetime and after your death. To learn more about how we can help you address your concerns, contact our office at 630-426-0196. We serve clients in Wheaton, Downers Grove, Glen Ellyn, Glendale Heights, Lombard, Oak Brook, Arlington Heights, and throughout DuPage, Kane, Cook, and Will Counties.