Secure Act 2020

12.30.19 | Personal Finance

Secure Act signed into law

The Setting Every Community Up for Retirement Enhancement Act, also known as the Secure Act, was signed into law by the president on December 20 this year. In general, we find the majority of the changes to be positive, as the intent of this new law is to expand opportunities for individuals to increase their retirement savings.

A few of the more significant changes

The age at which you are required to take a minimum distribution (RMD) is delayed to age 72.

Non-spouse inherited IRAs are subject to a 10-year withdrawal time limit.

Part-time employees can contribute income from income for 500 hours per year without it being subject to an employer match.

There is a baby provision, which allows a 10% penalty exception for participants that withdraw up to $5K for child birth or adoption expenses.

Read details from the House Committee on Ways & Means.

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