Legal Advice with Balmos Law

IS YOUR r ir m n 2020 new legislation m r SECUR E?

by Jennifer Balmos, Owner of Balmos Law, PLLC

The SECURE Act, effective on January 1, 2020, brings three major changes to retirement planning.

First, the age at which an individual must take required minimum distributions of his or her retirement account has been raised from 70½ to 72. This is great news for anyone who doesn’t need the income to cover their living expenses, as it gives the assets more time to grow.

Second, the SECURE Act removes the age restriction for qualified retirement accounts, meaning that individuals may continue to contribute to these accounts even after reaching age 70 ½. Now for the not so great news. For many beneficiaries, the SECURE Act eliminates the “stretch” for inherited retirement funds. Prior to its enactment, those who inherited retirement funds could “stretch” the payments out over their life expectancies. For younger beneficiaries, this had the benefit of smaller annual distributions made over a longer period of time, which minimized the impact of income tax on the distributions.

The SECURE Act, however, requires that all retirement funds be paid out within 10 years, unless the beneficiary fits one of a few exceptions. Practically speaking, an individual who inherits a retirement fund during her peak earning years could

find herself unexpectedly bumped into a higher tax bracket. The Congressional Research Service estimates that this change could generate up to $15 billion in tax revenue over the next 10 years.

That said, there are some exceptions to this rule. For example, minor children may continue to “stretch” out distributions over their life expectancy. However, that changes when the child reaches the age of majority. Once the child turns 18, he or she will now be subject to the 10-year payout rule.

In light of these changes, both retirement plans and estate plans should be carefully reviewed.

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Write with the en d in Min d by Brooke Ezzo

Sandra Rhoads has a dream to live in a world where art communities are everywhere and artists would be sharing and collaborating without being competitive. Her hope for her debut novel, Mortal Sight, is that the story will start conversations for art and create pockets of community where people can feel free to create with a true heart. Sandra’s first love is storytelling. From a young age, she has always created — whether it was short stories for friends, poems, or contract work for short films and women’s retreats. Sandra has a gift of words. With a degree in English and a Master’s in Milton, Sandra used these influences to write Mortal Sight and create a world where the arts come to life. “I weave Paradise Lost throughout the book,” Sandra said. “Part of the premise of the book is that classical artists from the past have embedded messages in their art that hint toward this other fantasy world.” The book is about a community of emerging artists and part of the story deals with the protagonist having visions. Her

love interest is able to transcribe the visions for her. They are depicted in the book but not drawn out. This gave her an idea to reach out to the Guyer High School art program and hold an art contest. “I would love for kids that are talented at art to read some of the descriptions of her visions and see where their minds take them,” Sandra said. “My hope “Artists and their art can speak a language that words themselves sometimes can’t do,”

is to have the winning rendering be published in the sequel.”

Sandra also plans to have the student’s artwork on her website, social media, and displayed at her book launch party.

“Since the book centers so much around art and artists, I thought this would be so neat,” Sandra said.

She is also excited to introduce these young artists to the old world. Twisting the application of the classical arts and making it interesting for the readers.

“I have a passion for bridging old and new, that’s why I write young adult,” Sandra said.

Sandra hopes the book pushes young people to take their first steps, pushing aside fear, and do something creative because it’s in them. She would love to see them rise up and flourish and to help find a place for the kids who don’t think they fit in anywhere.

“Artists and their art can speak a language that words themselves sometimes can’t do,” Sandra said.

Her inspiration comes from other artists, and she is excited to share her debut novel in hopes that the readers are inspired to create. If you’re stuck on a project or don’t know where to start, Sandra’s advice is to “write with the end in mind.”

“For me, I do think having the end in mind, at least where you are headed, helps craft the story,” Sandra said. “Because, you can get there a million different ways.”

No matter how she got there, we are happy she did. Mortal Sight is set to release on April 14, 2020. Its sequel will release sometime in 2021.

Sandra is deeply involved in the art world. She is going through a leadership program with Art House Dallas and volunteers her time once a month at the Flower Mound Teen Writers Group.

Sandra lives in Lantana with her husband, John, and their four children. When she isn’t writing you might find her at an art gallery, a concert, or on the tennis courts.

To preorder your copy of Mortal Sight, visit Amazon or Barnes and Noble. For more information about the book, visit www.MortalSight.com.