The SECURE (Setting Every Community Up for Retirement) Act was signed into law on Dec. 20, 2019.
The bill is broad, and its aim is to improve the nation’s retirement system, including provisions meant to
increase access to tax-advantaged accounts and prevent Americans from outliving their assets.
The act repeals the maximum age for traditional IRA contributions (which currently sits at 70 ½), and
increases the required minimum distribution age for retirement accounts to 72 from 70 ½. It also
mandates that most non-spouses inheriting IRAs take distributions in order to empty those accounts
within 10 years. This eliminates a much-used tool of tax deferral in estate planning, the stretch IRA.
Additionally, the SECURE Act will incentivize small businesses to offer 401(k) plans, and allow retirement
benefits for long-term, part-time employees.
To update your estate plan in accordance to this new bill, and to find out how these changes might
affect you, your family, or your business, give us a call at (720) 432-9167.