MCLEAN, Va., Dec. 18, 2019 /PRNewswire/ -- Stephan Cassaday, Founder, CEO & Chairman of award-winning independent wealth management firm Cassaday & Company, Inc., today issued the following statement on SECURE Act legislation that is awaiting approval by the U.S. Senate and is expected to be signed into law by the end of the week:
Although the bill has some minor benefits, it doesn't fully address the complex problems facing Americans who are saving for retirement and businesses that are providing retirement plan options for their employees. Not only that, but there is one provision that will affect many retirees negatively.
The SECURE Act will require certain beneficiaries (surviving spouses and minor children excluded) to withdraw inherited account balances within 10 years of the account owner's death. In other words, heirs will no longer be able to 'stretch' withdrawals over the course of their lifetime.
This makes a substantial difference in the required minimum amount and the taxes due, and, in many cases, will push the beneficiaries into higher tax brackets.
While we don't yet know how the implementation of the law will play out exactly, we do know that changing the rules in the middle of the game is not in the best interest of retirees.
If this provision passes, it will raise revenue on the backs of Americans who were conscientious savers and planned their estate and retirement affairs based on provisions expected to remain in place.
About Cassaday & Company, Inc.
Cassaday & Company, Inc. is an award-winning independent wealth management firm in McLean, Virginia, serving approximately 2,200 households and managing more than #3 billion in assets (as of Dec 2019). After 16 years with major New York Stock Exchange member firms, Steve Cassaday abandoned the traditional Wall Street model and founded Cassaday & Company, Inc. in 1993. His vision: to provide objective guidance to investors seeking advice about their financial situations, to do so with the highest levels of honesty, integrity, and overall excellence possible, and to provide faultless quality and courteous service – at a reasonable price.
Securities offered through Royal Alliance Associates, member FINRA/SIPC. Investment advisory and insurance services offered through Cassaday and Company, Inc., a registered investment adviser not affiliated with Royal Alliance Associates.
Contact: Michelle Tigani
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SOURCE Cassaday & Company Inc.