POST? — Recent Legislation That Could Impact Your IRA (Part 1)
March 9, 2020
Important Details About the SECURE Act
Before our last blog post on January 14, 2020 the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law on December 20, 2019. It represents the most sweeping set of changes to retirement legislation in more than a decade. While the IRS is still working to provide further guidance, we wanted to highlight a few key items. The most notable change—which took effect January 1, 2020—was to the age requirement for Required Minimum Distributions (RMDs). RMDs now begin at age 72 for individuals who turn 70½ in the calendar year 2020. If you had not reached age 70½ by the end of 2019, your RMDs will not be required until the year that you turn 72. This RMD must be taken by April 1 of the year after you reach 72. If you turned 70½ in 2019, you are required to complete your first RMD by April 1, 2020 and should continue to take your RMDs. Please consult your tax advisor for more information.
While many of the SECURE Act provisions offer enhanced opportunities for individuals and small business owners, there are a few important considerations for investors with significant assets in traditional IRAs and retirement plans. These individuals will likely want to revisit their estate-planning strategies to prevent their heirs from potentially facing high tax bills. If you’d like to reevaluate your estate plan, Orchard Alliance can help. Our team of experienced gift and estate design consultants can review your estate plan from a biblical perspective. For a free, no-obligation consultation, contact us at 833.672.4255 or email [email protected].
To read the second entry about the SECURE Act, click here.
This information is not to be considered legal or tax advice. IRA contributions after age 70½ may negatively impact IRA gifts. Please consult a tax professional before acting on this information.