Five Star award winner Kinley Wong

FOUR MAJOR HIGHLIGHTS OF THE SECURE ACT

Four Major Highlights of the SECURE ACT

The” Setting Every Community Up for Retirement Enhancement Act”, better known as the SECURE Act was signed by President Trump on December 20, 2019. The SECURE Act is one of the most dynamic changes to retirement legislation since the Pension Protection Act of 2006 and addresses a wide variety of retirement planning topics. Given that many of these changes became effective on January 1, 2020, there are a few key areas that may immediately affect your retirement plan. Here are four major changes created by the new law:

1.) Required Minimum Distributions (RMDs) Will not start at Age 70½ but at Age 72- Starting January 1, 2020, you will need to start withdrawing money from your qualified savings account, traditional IRAs and employer tax deferred accounts such as 401(k)s, 403(b)s, and 457s at age 72 and not at age 70½.

2.) After Age 70½, you Can Contribute to Your Traditional IRA - Beginning in the 2020 tax year, the new law will allow you to contribute to your traditional IRA in the year you turn 70½ and beyond.

3.) Inherited Retirement Accounts Eliminated - Upon death of the account owner, distributions to non-spouse individual beneficiaries must be made within 10 years.

4.) Adoption/Birth Expenses - The new law allows penalty-free withdrawals from retirement plans for birth or adoption expenses.

Though there are many more aspects and provisions to the new law, I have highlighted some of the most pertinent. As always, it is best to discuss and ensure you are kept abreast and adhered to the latest rules as they apply to your overall financial and retirement plan. If you need my help understanding The Secure Act, please call me to schedule a meeting to discuss The Secure Act.

Take Care, Kinley Wong, CRPC

CRN3226345-090220

Source SECURE Act of 2019 From Wikipedia, the free encyclopedia URL https://en.wikipedia.org/wiki/SECURE_Act_of_2019

The Secure Act and Clients with Transfer of Large IRA Balances

The SECURE Act (Setting Every Community Up for Retirement Enhancement) was signed by President Trump on December of 2019 have changed the transfer of wealth of middle-class families who have saved for retirement. You might not be familiar with the most basic provisions of The SECURE Act. The biggest change is your inability to transfer your traditional IRA accounts to the next generation without adverse tax effects.

The SECURE Act eradicates “Stretch IRAs” which previously allowed non-spouse IRA and retirement plan beneficiaries to drain inherited accounts over their life expectancy (The (Partial) Death of The Stretch IRA: How The SECURE Act Impacts Inherited Retirement Accounts, FEBRUARY 12, 2020 by Michael Kitces). Now, those same beneficiaries have only 10 years after the account owner’s death. By eliminating Stretch IRAs, The SECURE Act essentially setup non spousal beneficiaries of large transfer IRA accounts with up to 50% of the IRA going to federal (and possibly state) income taxes if proper planning is not done. Also, beneficiaries may not be prepared to be pushed into a higher tax bracket for the next ten years and to pay the resulting tax bill coming due as a result of The SECURE Act?
Though there are many more aspects and provisions to the new law, I have highlighted one of the most pertinent. As always, it is best to discuss and ensure you are kept abreast of and adhere to the latest rules as they apply to your overall financial and retirement plan.

If you need my help understanding The Secure Act, please call me to schedule a meeting to discuss The Secure Act.

Take Care,

Kinley Wong, CRPC

CRN3226674-090220

Back to Home Page

This award was issued on 10/1/21 by Five Star Professional (FSP) for the time period 12/28/2020 through 07/30/2021. Fee paid for use of marketing materials. Self-completed questionnaire was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria. 1413 San Francisco - East Bay-area wealth managers were considered for the award; 89 (6% of candidates) were named 2021 Five Star Wealth Managers. The following prior year statistics use this format: YEAR: # Considered, # Winners, % of candidates, Issued Date, Research Period. 2020: 1260, 88, 7%, 10/1/20, 1/13/20 - 8/7/20; 2019: 1340, 104, 8%, 10/1/19, 12/31/18 - 8/9/19; 2018: 1397, 113, 8%, 10/1/18, 1/16/18 - 8/10/18; 2017: 1049, 95, 9%, 10/1/17, 1/13/17 - 7/28/17; 2016: 948, 182, 19%, 9/1/16, 2/24/16 - 8/22/16; 2015: 2261, 183, 8%, 10/1/15, 3/5/15 - 7/31/15; 2014: 4527, 204, 5%, 10/1/14, 3/5/13 - 7/31/13; 2013: 858, 195, 23%, 10/1/13, 3/5/12 - 7/31/12; 2012: 1145, 233, 20%, 10/1/12, 3/5/11 - 7/31/11.

Click to access BrokerCheck

Kinley Wong is a registered representative of Lincoln Financial Advisors Corp.

Securities and investment advisory services offered through Lincoln Financial Advisors, a broker-dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies.

CRN-3711496-081021

This award is based on data from financial advisors, regulatory disclosures, and FSP research.
Working with a Five Star Wealth Manager is no guarantee of investment success. We were independently nominated for the 5 Star award and not required to be part of an organization, did not pay to be considered or receive the award though we paid $220 for the right to reprint the newspaper advertising page.

Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. The award is based on 10 objective criteria. Eligibility criteria-required: 1. Credentialed as a registered investment adviser (RIA) or a registered investment adviser representative; 2. Actively licensed as a RIA or as a principal of a registered investment adviser firm for a minimum of 5 years; 3. Favorable regulatory and complaint history review (As defined by FSP, the wealth manager has not; A. Been subject to a regulatory action that resulted in a license being suspended or revoked, or payment of a fine; B. Had more than a total of three settled or pending complaints filed against them and/or a total of five settled, pending, dismissed or denied complaints with any regulatory authority or FSP's consumer complaint process. Unfavorable feedback may have been discovered through a check of complaints registered with a regulatory authority or complaints registered through FSP's consumer complaint process; feedback may not be representative of any one client's experience; C. Individually contributed to a financial settlement of a customer complaint; D. Filed for personal bankruptcy within the past 11 years; E. Been terminated from a financial services firm within the past 11 years; F. Been convicted of a felony); 4. Fulfilled their firm review based on internal standards; 5. Accepting new clients. Evaluation criteria-considered: 6. One-year client retention rate; 7. Five-year client retention rate; 8. Non-institutional discretionary and/or non-discretionary client assets administered; 9. Number of client households served; 10. Education and professional designations. FSP does not evaluate quality of services provided to clients. The award is not indicative of the wealth manager's future performance . Wealth Managers may or may not use discretion in their practice and therefore may not manage their clients' assets. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by FSP or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by FSP in the future. Visit www.fivestarprofessional.com.