Adjustments in the SECURE and CARES Acts, with Bill Black

Bill Black is back for an encore episode of the Progressive Dentist podcast. If you didn’t get a chance to listen to our last discussion, check out Episode #13 where Bill and I talk about the nuances of pension and retirement planning. For those of you who didn’t get to meet Bill in the first interview, he is the president of W.H. Black & Company, a firm that specializes in pension and life insurance planning. Bill has been in the field of pension administration for four decades, and he specializes in custom-designed plans for closely-held businesses and professional practice owners. Bill is also a widely respected national and international speaker with regards to financial topics.

The SECURE Act

What sets W.H. Black & Company apart from their competitors is their willingness to dispel the myths around pension and retirement planning. They operate far ahead of the curve so that they can best advise their clients as new legislation is passed. The SECURE Act of 2019 is one of the recent developments to impact Bill’s niche. This act introduced changes to 401k plans that eliminated the mandatory 60-day notice for enrolling in a safe harbor 401k plan. They also started offering a $500 tax credit, or $250 for every non-highly-compensated employee up to $5,000, for the creation of a small employer plan. There are a number of other valuable administrative changes as well, which Bill discusses in depth.

The CARES Act

When the global pandemic first started, a lot of economic changes were coming about. With the passing of the CARES Act, defined contribution plans were given the following forms of relief: early withdrawals, more loans than typical, loan relief, and the waiver of your RMD for the following year. If the documents allow it, you can take a loan of half of your interest up to $50,000, or $100,000 if you are qualified. Loans are preferable to withdrawals because you don’t have to pay tax on them. You have to pay the loan back, but you end up paying yourself interest instead of the bank. Bill Black’s expertise will help you keep more of what you make, which is critical now more than ever.