The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law by President Trump on December 22, 2019. It will have a far-reaching effect on owners of IRAs and participants in tax-qualified retirement plans. SECURE includes substantial changes to the post-death distribution rules for 401(k) plans, 403(b) annuities, and IRAs. A notable change is the increase in the beginning date for Required Minimum Distributions (RMD) from age 70 ½ to age 72, i.e., there will be no ‘required beginning dates’ for 2021.
Much more significantly, SECURE eliminates the ‘stretch’ provision for IRAs inherited by most nonspouse beneficiaries.
View Leon LaBrecque's Forbes contributor profile and other blog posts here: https://www.forbes.com/sites/leonlabrecque/
For Important Disclosure Information click here: https://www.sequoia-financial.com/disclaimer
Image is Getty from original post on Forbes.com.