Is The New Secure Act Too Good To Be True? Eligible Designated Beneficiaries Not Affected By New Law Signing
The president recently signed into law the Secure Act, which goes into effect on January 1, 2020, and which is an acronym for Setting Every Community Up for Retirement Enhancement Act. As the name suggests, the focus of the secure act is on retirement planning, but has several provisions. These provisions include raising the age for required minimum distributions of IRAs and 401Ks from 70 ½ to 72; allowing working individuals to make contributions to IRAs after age 70 ½; allowing small businesses to join group 401K plans; allowing 401K plans to include annuities; and allowing 529 plans to repay up to $10,000 in student loans.
The biggest positive changes are that you now no longer have to start taking minimum distribution from an IRA at age 70 ½, but can wait until you reach age 72 and also that if you are still working, you can continue to make contributions into an IRA after age 70 ½. These changes are meant to address the reality that the general population is living longer than ever before and working into … Read More... “LEGAL ALERT: The New SECURE Act – A Boon for Seniors But Not so Much for Their Heirs”