Retirement

Q&A: What is the SECURE Act?

The “Setting Every Community Up For Retirement Enhancement (SECURE) Act” was passed in December of 2019 and caused the following changes:

  • increased the RMD age for Traditional IRAs from 70.5 to 72
  • non-spouse beneficiaries of pre-tax retirement accounts can no longer take beneficiary RMDs over their lifetime; they must take the entire account out within 10 years
  • allows people to make IRA contributions beyond age 70.5
  • Allows long-term, part-time workers to participate in 401(k) plans
  • Offers more options for lifetime income strategies
  • Permits parents to withdraw up to $5,000 from retirement accounts penalty-free within a year of birth or adoption for qualified expenses
  • Allows parents to withdraw up to $10,000 from 529 plans to repay student loans

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