The SECURE Act (Setting Every Community Up for Retirement Enhancement Act of 2019), aimed at improving people’s retirement security, was signed into law at the end of 2019.
Some key changes of the SECURE Act (http://bit.ly/2HwrLfV) affect Individual Retirement Accounts (IRAs) and has implication for anyone planning for retirement.
Required Minimum Distributions
Before, you were required to start taking money out of traditional IRAs – Required Minimum Distributions (RMDs) – by April 1 of the year after you turned 70 ½.
You now can wait until you’re 72 to start taking RMDs, which gives you extra time to save and to let your money grow.
Longer Window for Saving
You can keep contributing to your IRA for as long as you’re still working, whereas before, there was an age limit of 70 ½. The new law may help you save more for retirement.
Inherited IRAs Rule Change
There also are changes for those inheriting IRAs. Before, those inheriting such funds could take distributions over their lifetime. But that timeframe has now been reduced to 10 years.