2020 Federal SECURE Act

SECURE Act Applies in 2020 and Changes Many Retirement Account Planning Rules

On December 19, 2019, the United States Senate passed the “Setting Every Community Up for Retirement Enhancement” Act (SECURE Act) as part of the Further Consolidated Appropriations Act, 2020 (H.R. 1865, P.L. 116-94), which was signed into law on December 20, 2019. The SECURE Act expands opportunities for you to increase and use your retirement savings, and requires more rapid distribution by your beneficiaries.  A detailed description of the major changes affecting your retirement planning and estate planning can be found below.

• Repeal of Maximum Age for Traditional IRA Contributions
• Required Minimum Distribution Age Raised from 70½ to 72
• Post-Death Required Minimum Distribution (RMD) Rules Modified
• Section 529 Plans Expanded to Cover Registered Apprenticeships and Student Loan Payments
• Kiddie Tax Changes Made in 2018 Repealed
• Penalty-Free Plan Withdrawals Allowed for Expenses Related to the Birth or Adoption of a Child