HOW DOES THE SECURE ACT AFFECT ME?
Signed into law by President Trump on December 20,
2019, The SECURE Act (Setting Every Community Up for
Retirement Enhancement) focuses on improving the
retirement opportunities in our nation.
Items mentioned in SECURE Act
Those 70 ½ and older, still working, can make
contributions to traditional individual retirement
The required minimum distribution age has been
raised from 70 ½ to 72; HOWEVER, IRA owners
that turned 70 ½ in 2019 are subject to RMD’s at
70 ½ and must use the regular UNIFORM life table
(available on IRS.gov).
Qualified Charitable Distributions still apply at
age 70 ½ regardless·
The potential stretch for a non-spouse-named
beneficiary has been shortened.
Incentivizes small businesses to set up automatic
retirement enrollment plans.
A minor beneficiary gets 10 years to liquidate an
inherited IRA after they become an adult.
See reference below for more pertinent
information regarding this act.
Will This Affect Me?
Any IRA owner that passed in 2019 – the
beneficiaries are grandfathered into the old rules.
Any IRA owner that passes in 2020 or after will be
subject to the new rule.
The UNIFORM table will change, but for now, will not
be used until 2021. The SINGLE life table for non-
spouse beneficial owners will apply to beneficiaries
only where the IRA owner passed in 2019 and for
those after there is no RMD requirement as the 10
year rule will work like the 5 year rule and it just has
to be drained within that period of time
Sudzius, L., & Lollar, J. (2020). SECURE Act Makes Changes to IRAs, Pensions and Section 529 Plans.Life
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