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The AssetLock Advantage

AssetLock monitors the investor’s household portfolio value and AssetLock Value and communicates key changes to both the investor and financial advisor. This approach helps the investor capture portfolio gains and reduce the potential for losses by keeping the portfolio strategy and investor’s risk tolerance aligned.

LAFAYETTE FINANCIAL ADVISORS

Hux Capital Management

We are dedicated to providing you a customized retirement and investment plan that will last your lifetime and beyond. Simply put, we strive to be our client’s trusted advisor. As a financial advisory firm, located in Lafayette, Louisiana, our primary focus is to provide unbiased advice that is designed to achieve long term investment results. The decisions we make on your portfolio are based on math and science and not buy and hold.

We strive to provide you with the highest level of professional investment education, informed planning, direction, and consultation, along with the highest level of customer service in the industry. No matter your investment level, each and every client will receive these benefits, with the highest degree of trust, integrity, and respect, while constantly collaborating using a team approach.

Meet Randy Hux

Randy Hux, Founder and President, is passionate about providing you with unique solutions and education about your retirement and investments.

Our Approach

We have the most transparent process for your retirement and investment needs. Our processes are simple and easy to understand. They are designed to build you a secured future.

How we're different

We operate with a high level of character and integrity. You will find that we are thorough and we want to know your concerns and needs intimately.

Latest Blog Articles

Navigating the New Landscape of Inherited IRAs and Retirement Planning

The Secure Act & SECURE 2.0

November 25, 20244 min read

SECURE ACT 2.0

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and its successor, SECURE 2.0, have brought significant changes to retirement planning and inherited Individual Retirement Accounts (IRAs). These legislative updates aim to improve retirement savings opportunities but also introduce new challenges, particularly for those inheriting retirement accounts.

The SECURE Act of 2019: A Game-Changer for Inherited IRAs

The SECURE Act of 2019 introduced several key changes that affect inherited IRAs:

1. The 10-Year Rule: This rule requires most non-spouse beneficiaries to empty inherited IRAs within 10 years of

10 YR RULE

the original owner's death[1][3]. This change eliminated the "stretch IRA" strategy, which previously allowed beneficiaries to distribute inherited IRA funds over their lifetime.

2. Exceptions to the 10-Year Rule: Certain "eligible designated beneficiaries" can still stretch distributions over their lifetime, including:

● Surviving spouses

● Minor children of the account owner (until they reach the age of majority)

● Disabled or chronically ill individuals

● Beneficiaries not more than 10 years younger than the account owner[4]

3. Required Minimum Distributions (RMDs): The Act raised the age for required minimum distributions from 70½ to 72[1].

The Potential Tax Burden

The 10-year rule can create significant tax implications for beneficiaries:

● Compressed Distribution Timeline: Beneficiaries must withdraw the entire account balance within 10 years, potentially pushing them into higher tax brackets[3].

● Loss of Tax-Deferred Growth: The shortened distribution period reduces the potential for long-term, tax-deferred growth within the account[4].

● Impact on Other Tax Benefits: Large distributions can increase adjusted gross income, potentially affecting eligibility for certain tax credits and deductions[5].

SECURE 2.0: Further Refinements

SECURE 2.0, passed in December 2022, builds upon the original SECURE Act with additional changes:

1. RMD Age Increase: The age for required minimum distributions will increase to 73 in 2023 and to 75 in 2033[5].

2. Clarification on RMDs for Inherited IRAs: Starting in 2025, certain beneficiaries will need to take annual RMDs from inherited IRAs if the original account holder had reached their RMD age before passing[5].

3. Enhanced Spousal Benefits: Spousal beneficiaries can now elect to be treated as the original employee for RMD purposes, allowing for more advantageous RMD calculations[4].

Strategies to Mitigate Tax Impact

To manage the potential tax burden of an inherited IRA:

1. Spread Distributions: Consider taking distributions evenly over the 10-year period to smooth out the tax impact[4].

2. Strategic Asset Allocation: If possible, hold assets with lower growth potential in the inherited IRA and higher growth potential assets in other accounts[4].

3. Consult a Professional: Work with a financial advisor or tax professional to develop a personalized strategy that aligns with your overall financial plan.

The SECURE Act and SECURE 2.0 have significantly altered the landscape of retirement planning and inherited IRAs. While these changes aim to enhance retirement savings opportunities, they also present new challenges, particularly in tax management for beneficiaries. Understanding these changes and planning accordingly is crucial for both account owners and potential beneficiaries.

Remember, individual circumstances vary, and tax laws can be complex. It's always advisable to consult with qualified financial and tax professionals when making decisions about inherited IRAs and retirement planning. We are here to help so if you have any questions, please contact our office to schedule a call or appointment.

New RMD Rules For Spousal Beneficiaries Of Retirement Accounts With SECURE 2.0’s “Spousal Election” Option

[9]

Hux Capital Management

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______________________________________________________________________________________________

This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The sources used to preparethis material are believed to be true, accurate and reliable, but are not guaranteed.

Citations:

[1] https://www.kiplinger.com/taxes/inherited-ira-four-things-beneficiaries-should-know

[2] https://giving.wustl.edu/implications-of-inherited-iras/

[3] https://anderscpa.com/inherited-ira-10-year-rule-rmds-irs-clarifies/

[4] https://www.fidelity.com/learning-center/personal-finance/retirement/secure-act-inherited-iras

[5] https://www.cnbc.com/2024/09/17/reduce-taxes-inherited-individual-retirement-accounts.html

[6] https://www.investopedia.com/inherited-ira-rules-for-beneficiaries-8661569

[7] https://www.bankrate.com/retirement/inherited-ira-rules/

[8] https://www.schwab.com/learn/story/inherited-ira-rules-secure-act-20-changes

[9] https://www.kitces.com/blog/rmd-spousal-election-secure-2-0-secure-act-rmd-rules-spousal-beneficiaries-retirement-account/


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Investment advisory and financial planning services are offered through Simplicity Wealth, LLC, an SEC-registered investment adviser. SEC registration does not constitute an endorsement of the firm nor does it indicate that the adviser has attained a particular level of skill or ability. Insurance, Consulting and Education services offered through Hux Capital Management LLC. Hux Capital Management LLC is a separate and unaffiliated entity from Simplicity Wealth. Please also add: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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HUX CAPITAL MANAGEMENT

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Hux Capital Management - Lafayette Fiduciary Services, Financial, Investment, Annuity, Insurance, 401k Advisor

Investment advisory and financial planning services are offered through Simplicity Wealth, LLC, an SEC-registered investment adviser. SEC registration does not constitute an endorsement of the firm nor does it indicate that the adviser has attained a particular level of skill or ability. Insurance, Consulting and Education services offered through Hux Capital Management is a separate and unaffiliated entity from Simplicity Wealth.

The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than where legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.

Hux Capital Management, LLC and Randy Hux are not affiliated with or endorsed by the Social Security Administration or any government agency.

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