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How will the SECURE ACT impact You and What you need to Know!

On December 26, 2019

The SECURE ACT (Setting Every Community Up for Retirement Enhancement ACT), was signed by President Trump on December 20, 2019 and set to go into effect January 1, 2020. This retirement legislation will impact many things and many people. We have listed five things we want you to be aware of and have touched on a few of them in greater detail.

5 Things You Need to Know –

  1. Required Minimum Distributions increase from age 70 ½ to age 72.
  2. Contributions to traditional IRAs are allowed after age 70 ½.
  3. Expanded benefits for part-time employees, new parents and students with debt.
  4. Inherited IRAs with non-spouse beneficiaries must be withdrawn within 10 years.
  5. Affects all qualified plans (i.e. 401(k), 403(b), ESOPs, defined benefit plans, IRAs)

The first change we want to cover in more detail is #1 on our list. The new law increases the age that an individual must begin taking his or her RMD (Required Minimum Distribution) from age 70 ½ to age 72. This change is beginning with IRA account owners who will turn 70 ½ on or after January 1, 2020. This will not impact anyone that is currently already taking their RMD.

Second, and potentially far more consequential in our opinion, is…

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