SECURE Act. Effective January 1, 2020, for IRA account owners who die after December 31, 2019, the SECURE Act requires the entire balance of the participant’s account to be distributed within ten years. There is an exception for distributions made to an eligible designated beneficiary including a surviving spouse, a child who is still a minor, a disabled or chronically ill person or a person not more than ten years younger than the IRA account owner. The new ten-year rule applies regardless of whether the participant dies before, on or after the required beginning date, which effective January 1, 2020 is the day the account owner turns age 72. Please consult your tax advisor for assistance. • FACTS WHAT DOES STATE STREET DO WITH YOUR PERSONAL INFORMATION? Rev. 07/2020 Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. Why? The types of personal information we collect and share depend on the product or service you have with us. This information can include: ■ Social Security number and income ■ Account balances and payment history ■ Transaction and transactions histories When you are no longer our customer, we continue to share your information as described in this notice. What? All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons State Street chooses to share; and whether you can limit this sharing. How? Reasons we can share your personal information Does State Street share? Can you limit this sharing? For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus Yes No For our marketing purposes — to offer our products and services to you No We don’t share For joint marketing with other financial companies No We don’t share For our affiliates’ everyday business purposes — information about your transactions and experiences No We don’t share For our affiliates’ everyday business purposes — information about your creditworthiness No We don’t share For our affiliates to market to you No We don’t share For nonaffiliates to market to you No...
SECURE Act. New Federal Law Expands Uses for 529 College Savings Account On December 20, 2019, the Setting Every Community Up for Retirement (SECURE) Act, expanded the expenses treated as Qualified Higher Education Expenses to include certain student loan payments and costs of apprenticeship programs. Effective for distributions taken beginning January 1, 2019, the earnings portion of a distribution from an account in a 529 plan used for the following expenses will not be subject to federal income tax: Student Loans – up to $10,000 from a 529 account can be used to repay principal or interest of qualified education loans of either the Designated Beneficiary or a sibling of the Beneficiary. The $10,000 limit is a lifetime limit that applies to each individual. Distributions for the repayment of loans of a sibling will count towards the lifetime limit of the sibling, not the Beneficiary. Any student loan interest deduction is generally reduced by qualified education loan amounts paid for with 529 account assets. Please consult with a tax advisor for more information. Apprenticeship Programs – expenses for fees, books, supplies and equipment required for the participation of the Designated Beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under Section 1 of the National Apprenticeship Act will be treated as Qualified Higher Education Expenses. Connecticut State Law - For purposes of Connecticut state income taxes, Connecticut follows the SECURE Act as it relates to (1) any amount of a 529 plan distribution used to pay for fees, books, supplies and equipment required for the participation in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act or (2) up to the $10,000 lifetime limit of a 529 plan distribution used to pay principal or interest on a qualified education loan of the Designated Beneficiary or a sibling of the Designated Beneficiary, as described in the SECURE Act. There is no provision in Connecticut law that would require an Account Owner to include such apprenticeship program costs and qualified education loan payments into an Account Owner’s Connecticut adjusted gross income subject to Connecticut income tax. This information is not intended to provide tax, accounting or legal advice. Please consult with your own tax advisor.
SECURE Act. The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), which was signed into law in December 2019, included a package of changes to the laws governing retirement plans and Individual Retirement Accounts (IRAs). Enclosed please find a copy of our “Important Notice regarding the SECURE Act,” which describes some of the changes in the law the SECURE Act made to IRAs. Please note that the “X. Xxxx Price Traditional and Xxxx XXX Disclo- sure Statement and Custodial Agreement” and the “SIMPLE IRA Summary & Agreement” are in the process of being updated to reflect these changes. Please keep this “Important Notice” with your “X. Xxxx Price Traditional and Xxxx XXX Disclosure Statement and Custodial Agreement” and/or the “SIMPLE IRA Summary & Agreement.” X. Xxxx Price will notify you once the Agreements have been updated.
