On December 20, 2019 The Setting Every Community Up for Retirement Enhancement Act of 2019 was signed into law. While this law is quite detailed, for our purposes we’ll just hit the highlights.
Penny Lane Financial works closely with retirees to determine the best course of action when accessing their retirement funds. A big part of that is Required Minimum Distributions (RMDs). The SECURE act has pushed back the age to take those distribution from 71½ to 72 and allows traditional IRA owners to keep making contributions indefinitely.
Another big change for beneficiaries is that inherited IRA accounts must be accessed within 10 years or sooner. Meaning the beneficiary(s) can only spread the tax owed for up to 10 years.
The Act allows 401(k) plans to offer annuities.
Part-time workers will be eligible to participate in an employer retirement plan.
While these are only a few of the changes, they are significant. If you are interested in learning more how this may affect your life and retirement, please contact us.
Investopedia offers a detailed explanation here https://www.investopedia.com/what-is-secure-act-how-affect-retirement-4692743