Secure Act ; Potential Changes Coming That May Impact Your Retirement Plans.
In May of 2019, The House of Representatives passed the SECURE ACT that is now awaiting the
Senate’s action. There are 26 different components to the SECURE ACT. Below are a few that
could impact your retirement plans:
• Eliminating age cap on contributions to IRA’s. Currently if you are working and over 70
½ you are not eligible to contribute to an IRA (however you can contribute to a ROTH
IRA). Proposal is to eliminate the age cap on IRA contributions.
• Required Minimum Distributions (RMD’s) age to be raised from the current 70 ½ up to
72. This allows your accounts to continue to grow before you are REQUIRED to take
• Elimination of the “stretch IRA”. Currently most people that inherit an IRA can take
distributions over their lifetime. Proposal is to require distributions for anyone other
than a spouse or disabled child be taken in a maximum of 10 years. MAJOR change and
could have significant tax implications to the person inheriting the IRA. May be a
fantastic reason to consider ROTH CONVERSIONS now while taxes are ON SALE.
These are only a few of the 26 components proposed in the SECURE ACT. Once a version
becomes law (large bipartisan support to get some version of this passed this year) we will
conduct seminars on how YOU will be impacted. Please check our website under the EVENTS
tab for upcoming seminars.
If you have any questions on the SECURE ACT or how you may be impacted, please give us a call
at 479.876.2100 for a complementary, comprehensive retirement analysis.