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The SECURE Act and You

Gregory Ricks on January 14, 2020

Does the SECURE Act have you worried about your retirement income?

The new law the President signed late last year, formally titled “Setting Every Community Up for Retirement Enhancement Act,” went into effect on Jan. 1, 2020 and it could bring some changes to your retirement plan.

Here are some highlights:

The act removes age caps on contributions to IRAs.

o  Under the old rules, all contributions must end at age 70½. The SECURE Act will allow you to add money to your IRA at any age so long as you have earned income.

The age for taking required minimum distributions (RMDs) has increased.

o   Those who turn 70½ in 2020 and beyond can delay when they start receiving RMDs until age 72 (specifically by at least April 1 of the year after you reach 72).

There will be no more stretch IRAs

o   IRAs you inherit must be liquidated within a 10-year window of the account owner’s death. However, this requirement doesn’t apply to a beneficiary who is surviving a spouse, a minor child (or student up to age 26), someone no more than 10 years younger, a chronically ill person or a disabled person.

We know interpreting this new law can be confusing, but that’s why you have us! Our firm is well-versed in these changes and can answer any questions you may have about your financial situation.

Feel free to give us a call to talk through any concerns.

We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Our firm does not provide tax or legal advice.