On December 20, 2019, President Trump signed a new law that includes a number of retirement savings and employee benefit changes. This new law changes many aspects of retirement and college savings including contributions, distributions, and inheriting retirement accounts. Today we highlight changes Required Minimum Distributions- RMD’s- which are an important aspect of financial planning for many of our clients. Our goal today is to highlight some significant changes to the rules that govern RMDs.

In our advisory practice, questions around planning for college are commonplace this time of year. The most common revolve around two primary areas: 1) how much needs to be saved, and 2) what are the right vehicles to use? Our firm considers family educational planning as part of a comprehensive financial plan, so computing the projections is an important facet of the planning process. There are many different vehicles, each with their own set of pros and cons. We understand that every household is unique, with a different set of competing priorities. It is our job to help families navigate what can seem like a complex financial challenge. Having a strategy is important because of the uncertainties that may lay ahead.

We get a lot of questions around timing of your Required Minimum Distribution (RMD) from your retirement accounts. Retirement account distributions are an important part of year end planning in our practice so we thought it would be timely to discuss before the holiday season is upon us or as 2019 draws to a close.