Happy Monday Beautiful Women Supporting Women,
I hope you had a blessed weekend and relaxed on President’s Day. As mentioned last week, I am in Maryland with my Mother, supporting her as she recovers from major back surgery. We have been here for a week today and she will be transferred to a rehabilitation facility tomorrow. I am fortunate that while my Mother has her finances in order, she does not have Long Term Care. No matter what age you are, please make sure to get it while you are healthy enough to be approved for it. Once a major event impacts your health, your chances of approval are slim to none. It is important that we stay informed and prepared for any event that could occur. Being proactive as opposed to reactive is key. As we’ve just seen with Kobe and Gianna, tomorrow is not promised.
I introduced The SECURE Act for Retirement as our next topic. There were major changes to our retirement plans as we know it today and I would like to share each of them. Over the next 4 weeks, I will highlight changes to existing policies, as well as what was implemented. These changes can impact you at various stages of your life.
Tax Free Childbirth/Adoption Expenses
The government is taking into consideration your expanding family. Currently, if you are under the age of 59 1/2 and take a withdrawal from one of your pre-taxed, retirement plans (e.g. 401K, 403B, 457 Deferred Compensation or Traditonal IRA, etc.), you will be charged a 10% penalty.
With The SECURE Act for Retirement, a parent may withdraw up to $5,000 from their retirement-savings account within a year of a child’s birth or adoption without paying the 10% penalty for distributions before age 59½. Each parent, if they have separate retirement accounts, may withdraw up to $5,000 penalty-free for each childbirth or adoption. While it is preferred that withdrawals are not done from your retirement plan, it’s nice to know you now have a penalty-free option.
Next Up: 529 College Plan changes
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As always, thank you for reading.
Have an amazing and blessed week,
Changing the lives in our community…. one family at a time