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What is the SECURE Act & How Does It Affect Your Retirement?

Published by Robert J Stillwell on April 15, 2020


As the world evolves, life as we know it is forever changing.  Everything from Technology to Healthcare. Because of these changes people are living longer and working longer, this alone has signaled a change to our retirement goals and our retirement laws.

On December 19, 2019 the United States government passed a new law called the SECURE Act (Setting Every Community Up for Retirement Enhancement); which became effective January 1, 2020.

The Secure Act was designed to help Americans save for retirement, as well as, help owners of small businesses offer their employees retirement plans.  With this in mind the government has taken the necessary steps to restructure our current retirement laws, while adding new laws that are set to benefit many American Workers. 

There are notably many changes, however, we’ve taken the liberty to list a few of the more prevalent ones, please see below:

Required Minimum Distribution on Qualified Retirement fund age has been raised from age 70-1/2 to 72

  • If born on or after July 1, 1949
  • Those who turn 70-1/2 in 2020 or Later don’t have to take RMD until age 72
  • There is still a 50% excise tax, if RMD not taken @ age 72

Maximum Contribution to your Qualified Retirement Accounts age has been removed.

  • As long as you have Earned Income you can still contribute (Alimony is considered earned income)
  • You can make contribution and take RMD in the same year

Maximum Contribution Limits:

  • Under age: 50 $6,000.00
  • 50 and older:  $7,000.00

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