The SECURE Act: 3 Key Takeaways

The SECURE Act: 3 Key Takeaways

By many estimates, the SECURE Act was the largest retirement reform bill since 2006. But at 18,000 words long, most investors haven’t had time to sit down and read it yet.

Passed in 2020, the act introduced several key changes to retirement planning. One significant change is that retirees must now begin taking Required Minimum Distributions (RMDs) at age 72, rather than 70½, providing an additional 18 months for funds to grow before taxable distributions begin. Another major change is the elimination of the “Stretch IRA” for many beneficiaries, meaning that most beneficiaries must now withdraw the full balance of an inherited IRA within 10 years, which could lead to higher tax liabilities.

Additionally, it allows individuals over the age of 70 to make tax-deductible contributions to retirement accounts, which is beneficial for retirees who continue to work and want to take advantage of tax-deferred growth. These are just a few of the notable changes, and if you’d like a more personalized analysis of how the SECURE Act may affect your retirement plan, our team is available to help.

The good news is, we just finished an article that details three key takeaways from the act, and you can get your copy now. http://bit.ly/secure_act_2020

Published On: February 7, 2020|Categories: Resource Center|Tags: retirement|

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