Did you know…
December 20, 2019 President Trump signed into law the Setting Every Community Up for Retirement Enhancement Act, known as the SECURE Act. Here are the more notable updates:
- The SECURE Act extends the RMD starting age from 70 ½ to 72.
- Americans are living longer, and an increasing number are choosing to continue working beyond the traditional retirement age. As a result, the SECURE Act allows those individuals over age 70 ½ who have earned income to continue saving for retirement by contributing to a traditional IRA.
- The SECURE Act now requires most non-spouse beneficiaries to withdraw taxable, inherited IRA assets WITHIN 10 years, rather than stretching them over their lifetime.
- Prior to the SECURE Act, employers could exclude part-time employees when providing a defined contribution plan, such as a 401 (k), to their employees. Under the new law, certain part-time employees will now be able to participate in their employer-sponsored retirement plan.
- Under the SECURE Act, providers of defined contribution plans will be required to disclose annually the monthly lifetime income value of retirement accounts.