Please note: Call center hours expanded to open at 8:00 am EDT to better serve our clients.
Visit our Coronavirus Resource Center for important updates and resources to help you navigate this time (this resource center also includes information related to the CARES Act and IRS Tax Deadline updates).


Managing Your Account

The SECURE Act: What You Should Know

January 30, 2020

contribution plan or IRA without incurring a 10-percent penalty.

Roth IRA Conversions

With the given provisions of the SECURE Act, financial institutions have noted that a Roth IRA may be a more advantageous account for retirement savings. With a Roth IRA, there is no RMD. Also, contributions are made after-tax, meaning qualified distributions are tax-free.

David Demming of Demming Financial said in a article, “As marginal tax rates have declined, our enthusiasm for Roths has increased. We have completed hundreds of Roth conversions and frequently take after tax withdrawals from 401-K’s to Roths…”

Some individuals may find it beneficial to convert funds from a Traditional IRA to a Roth IRA, known as a “Roth conversion.”

When does the SECURE Act become effective?

Most provisions of the SECURE Act are effective as of January 1, 2020.

Yes. Once your account has been opened and you have your own Client Access PIN (personal identification number) you can check the status of your transfer online or feel free to contact Equity Trust. Our intuitive and interactive account management site, myEQUITY, provides a responsive experience for computers, tablets and mobile devices offering around-the-clock account access at home or on-the-go.

There is no tax reporting when transferring funds/assets from one IRA custodian to another IRA of the same type at a different custodian. The IRA owner does not personally receive or control the assets, such as in a distribution, which would trigger a taxable event to report.

There are several reasons to open your self-directed account at Equity Trust Company, even before you have selected an alternative investment.

  1. If you are transferring cash/assets to your account from another custodian, you should allow time for the resigning custodian to process your request and deliver the account holdings to Equity Trust.
  2. You have the ability to invest in traditional assets while you are researching other opportunities.
  3. Once you have selected an alternative investment, you will not have other actions in process that may delay the funding processing.

Have Questions?

Get answers to your questions and learn more about building wealth with tax advantaged accounts.

Contact Us