BY BRAD BECKETT ON DECEMBER 23, 2019
Just before slipping (slithering?) out of town for their annual Christmas break, Congress passed (and subsequently signed by the President) the $1.4 trillion Further Consolidated Appropriations Act that will fund the federal government for the rest of FY 2020. However, sneakily tucked into that measure was something that will cause investors to take notice: the SECURE Act (Setting Every Community Up for Retirement Enhancement). The bill had already passed the House back in April, 2019 but had been languishing in the Senate until it was amended into this fast-tracked funding bill. National REIA partner Equity Trust pointed out that “the bill will affect IRA Required Minimum Distributions and inherited IRAs, among other aspects.”
Indeed…Yahoo Finance has pointed out some key provisions:
- Your RMDs Will Start age Age 72, not 70 ½
- You Can Contribute to Your Traditional IRA After Age 70 ½
- You’ll Have to Pay Taxes on Inherited IRAs Sooner (eliminates stretch IRAs)
- You May See a New Annuity Option in Your 401(k)