There’s no doubt that your retirement plan and your estate plan and tax strategy are all connected. Here at Stein Law LLC, we’ve been working with clients who need and want that across-the-board strategy for their entire financial picture.

With so many changes happening in the current economy, it’s important to have a team of advisors at your side who guide you through the process of getting the support that you need. As a result of the SECURE Act, there’s never been a better time to take a look at the options available to you with your IRA.

If you plan to pass down your retirement benefits to your loved ones when you pass away, you might have heard about how the SECURE Act has forced many to reconsider how this was set up in their plan. For everyone except spouses, it’s no longer an option to stretch distributions from an IRA over the course of a beneficiary’s lifetime.

This was a big benefit being used by many in the past because it allowed for the accumulation of tax-free income inside a trust. However, the news is not all bad for those who still want to include their IRA in their estate plan. There are other planning opportunities here, and we’ll work to help you discover whether they make sense for you.

Particularly in light of the CARES Act, there are some options to enhance your charitable giving, for example. If you do not itemize your deductions, you can add another $300 to your deductions for making a cash donation for a public charity. This deduction will impact your 2020 taxes and beyond at the time of this writing. (And be sure to stay tuned to this blog, where we’ll release other pertinent info as the laws will, inevitably, change. Not to plug ourselves too much, but this is the reason you want a relationship with a professional tax and estate lawyer-we’ll do the work of staying up to date so you don’t have to.)

Also within 2020, there is no cap on deductions for your charity cash contributions. You can donate as much as 100% of your adjusted gross income and get a deduction for that whole amount. This number was previously capped at 60%, making it a big possibility.

Not sure how to approach adjusting your strategies in light of legal changes? Schedule a meeting with our tax lawyers today to learn more about your options.