The Navigator | February 2020 While the first weeks of the year saw equities continue the same positive trend of Read More
January 27, 2020
The Setting Every Community Up for Retirement Enhancement Act of 2019 (also known as the SECURE Act) was created to help ensure all Americans have access to retirement tools that maximize their available assets after they leave the workforce. Updates to this law were enacted in late December with provisions aimed to increase access to tax-advantaged accounts, as well as provide retirees with additional distribution flexibility.
- Age limit for IRA contributions eliminated
- Exception created for the 10% penalty for qualified plan distributions related to birth or adoption
- Non-tuition fellowship stipends can be treated as qualified compensation for IRA contributions
- Changes making it easier and more profitable for small business owners to set up “safe harbor” retirement plans for their employees
- Expansion of eligibility for part-time workers to participate in employer retirement plans
- Changes encouraging employers to offer annuities as part of 401(k) plans
- Extension of the age at which retirement plan participants need to take required minimum distributions (RMDs), from 70 1/2 to 72
- With few exceptions, non-spousal Inherited IRAs now must be fully distributed within 10 years of receipt
These updates affect current retirees, future retirees and business owners. NorthCoast has reviewed the new provisions in detail and can provide solutions for investors in any situation to maximize their participation and take advantage of the program changes.
Source: Forbes, MarketWatch