Introduction To The SECURE Act

On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”) into law. The SECURE Act was signed in the middle of the holiday season and was tucked into a 1,700 page, $1.4 trillion act that will fund half of the government for the remainder of fiscal year 2020. Although the SECURE Act did not receive much fanfare, it creates the most significant retirement plan legislation changes in over a decade.

Here are a few of the most significant changes contained in the SECURE Act:

  • If you did not reach age 70.5 in 2019, then you do not have to start taking required minimum distributions from your traditional IRA until the year you reach age 72 (this does not apply to inherited traditional IRAs).
  • In general, a non-spouse beneficiary of an inherited IRA cannot stretch the required minimum distributions over his/her lifetime, but instead must withdraw all funds from the inherited IRA within 10 years of the original owner’s death.
  • Even if you are over age 70.5, you may now continue contributing to a traditional IRA as long as you have the necessary earned income to do so.
  • The SECURE Act allows 401(k) plans to offer variable annuities as an investment option.
  • The SECURE Act allows small companies to pool their resources by allowing employees from multiple companies to participate in the same 401(k) plan.

Please click here to contact your FineMark advisor if you are interested in discussing how these changes specifically impact you or if you want to discuss any other aspect of your retirement planning.

Read Sawczyn

Introduction To The SECURE Act

By Read Sawczyn
Senior Vice President & Private Wealth Advisor, Trust

Articles In This Issue:
2019 Fourth Quarter Review and Commentary
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