Allegiance Gold Explains How the SECURE Act Impacts Your IRA in 2020 and Shares Tips for Maximizing Retirement Savings Ahead of Tax Deadline

SECURE Act gives investors more time to invest and save for retirement and as such Gold IRAs are gaining momentum in 2020

WOODLAND HILLS, CA / ACCESSWIRE / February 20, 2020 / April 15th is not only the tax filing deadline but is also the last day for individuals to contribute to their IRAs for the 2019 tax year. In advance of the upcoming tax season,Allegiance Gold's CEO, Mark Naaman, highlights recent changes to retirement systems and how investing in gold IRAs could have additional tax benefits.

It's recommended that individuals maximize their IRA contributions. For individuals over the age of 50, the contribution limit for Traditional and Roth IRAs is $7,000; for those under the age of 50, the limit is $6,000. Traditional IRAs are tax-deductible on both state and federal returns. Roth IRAs are not tax-deductible and, therefore, will not lessen adjusted gross income for 2019.

Signed into law on December 20, 2019, and considered one of the most significant reforms to retirement legislation in more than a decade, the Setting Every Community Up for Retirement Enhancement (SECURE) Act aims to make it easier for businesses to offer retirement plans and for individuals to save for retirement. Some key provisions of the SECURE Act that went into effect on January 1, 2020 include the following:

Distribution Age Is Raised To 72

"Before the SECURE Act went into effect, individuals with IRA and 401(k) accounts had to start making required minimum distributions (RMDs) from their retirement accounts once they turned 70 ½," said Naaman. "But the SECURE Act changed that by raising the minimum age to 72, basically adding on an extra year-and-a-half before RMDs are permitted."

Age Limit For Contributions Is Eliminated

"Previously, you were prohibited from contributing to a Traditional IRA using pre-tax dollars if you were over the age of 70 ½, although you could still make post-tax contributions to a Roth IRA. The SECURE Act changed that by eliminating the age limits on contributions to Traditional IRAs, which allows older workers to continue contributing pre-tax dollars from their paychecks to their IRA accounts," said Naaman.

Changes To Inherited And Stretch IRAs

"Stretch IRAs used to allow individuals who inherited an IRA to "stretch out' distributions over their lifetimes. For example, if you die at age 85 and leave your IRA to your 55-year-old son, he could withdraw money from that IRA over the course of his lifetime," explained Naaman.

"The new laws under the SECURE Act, however, require all non-spouse inheritors of IRAs to distribute the assets from their inherited IRAs within 10 years. This could cause a huge tax hit to children inheriting their parents' retirement accounts. It's also significant to note that we are on the cusp of the largest generational wealth transfer in US history, as an estimated $68 trillion will change hands in the U.S. from baby boomers to the next generation."

Gold IRAs are gaining momentum in 2020

"Commodities like gold and other precious metals have historically remained stable in the face of stock market volatility, currency devaluation and failing real estate prices," said Alex Ebkarian, COO of Allegiance Gold. "In fact, over the last two decades, gold has outperformed the stock market."

"This year is expected to be another year of significant uncertainty and geopolitical turmoil. There could also be quite a bit of market volatility ahead of the U.S. presidential elections. In a late cycle environment, the outlook for gold tends to shine bright. I think the odds for an insurance-type event are fairly high in 2020, which fits naturally with gold's traditional role as an insurance asset."

"This is why a Gold or precious metals IRA should be part of every individuals' investment portfolio. A Gold IRA, whether Traditional, Roth, or SEP, not only diversifies a portfolio on a tax-deferred basis, but also protects against predictable and unforeseen market corrections."

"Precious Metals IRAs have a significant tax benefit" noted Ebkarian. "Precious metal IRAs are portable and mobile, while a standard IRA is not. In addition to the standard monetary distributions, investors with a precious metal IRA can take an in-kind distribution which allows them to physically hold the asset. In so doing, distribution rules are satisfied without "selling the position" and a lower tax-basis valuation is realized. On the other hand, paper investments force investors "to sell the position" when taken as an in-kind distribution, unnecessarily exposing them to potentially unfavorable market conditions."

About Allegiance Gold, LLC

Allegiance Gold, considered the most trusted Gold IRA firm in the US, helps individuals protect their wealth and retirement accounts by diversifying and investing in physical precious metals. As an independent national precious metals dealer, Allegiance Gold also offers a wide range of precious metal products.

Allegiance Gold has earned the highest verified rating from third-party consumer protection agencies: A+ rating from the Better Business Bureau (BBB), AAA rating from the Business Consumer Alliance (BCA) and a 5-star rating from TrustLink.

For more information, please call (844) 790-9191, or visit http://www.allegiancegold.com.

Allegiance Gold, LLC is located at 21650 Oxnard Street, Suite 1540, Woodland Hills, CA 91367.

SOURCE: Allegiance Gold