The 2020 SECURE Act
An important development in the world of financial planning for both pre and post-retirees was the passing of the SECURE Act by congress which was designed to ease and encourage Americans to save for a sustainable retirement. The Act went into effect January 1, 2020.
A few of the highlights:
For Individuals:
Required Minimum Distributions from qualified retirement plans and IRAs have been extended from 70 ½ to 72 for those who will turn 70 ½ in 2020 or later
Non-spouse IRA beneficiaries must now withdraw funds within 10 years, eliminating the lifetime stretch IRA for children and grandchildren
Student loan repayment up to $10,000 from 529 College Savings Plans
Age limit removed for IRA contributions
For Business Owners:
The expanded adoption of Multiple Employer Plans easing the cost and compliance burden for starting 401(k)s
A tax credit up to $5,000 to start new retirement plans
There are many other planning considerations affected by the passing of the SECURE Act. This is an opportune time for you to revisit your financial plan, but also estate planning considerations as well.
