The SECURE Act and Your Money- How Will This Impact You?

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The SECURE ACT (Setting Every Community Up for Retirement Enhancement) has been sent to the President to sign into law.  Here are some of the key components and what they could mean to YOU and YOUR MONEY in 2020:

  • Stretch IRA’s eliminated– inherited IRA’s will now be required to take all distributions within a 10 yr timeframe.  Depending on the amount of the IRA, this could force recipients into a higher tax bracket.  SOLUTION- Consider ROTH IRA conversions now.
  • Required Minimum Distributions (RMD)– if you have turned 70.5 before 1/1/2020 you are still required to take your required minimum distributions from your qualified accounts (IRA, 401k, etc.).  If you turn 70.5 after 1/1/2026 then you start your RMD’s in the year you turn 72. 
  • IRA Contributions – current law prohibits IRA contribution past the age of 70.5, the SECURE ACT removes this barrier allowing those still working at 70.5+ to contribute to an IRA.
  • Annuity Options In 401k’s– the SECURE Act lowers the liability concerns for insurance companies so that more annuity options will be available on 401k programs.  Could be a great option to create your own PERSONAL PENSION.
  • Increase Access To Retirement Plans For Smaller Employers – allows a group of smaller employers to work together to create a 401k plan for their employees.
  • These are only a few of the 29 items in the SECURE ACT.  Please contact our office here or call us today at: (479) 876-2100 to discuss how these and other components of the ACT may affect your financial situation.