In December 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act as part of the Further Consolidated Appropriations Act, encompassing several changes to retirement savings accounts.
Some highlights of the SECURE Act affecting IRAs include:
- Most non-spouse beneficiaries of IRAs will generally be required to distribute inherited amounts within 10 years (effective for IRA owner deaths in 2020 or later).*
- The Required Minimum Distribution (RMD) age has changed for those born on or after July 1, 1949. For these individuals, RMDs are not required until the year they turn age 72. For individuals born before July 1, 1949, the RMD required the year they turn 70 ½ remains unchanged.
- Taxpayers with earned income can make Traditional IRA contributions at any age, including after age 70 ½ (effective for 2020 and later taxable years).
The SECURE Act has been in effect since January 1, 2020 and Sunward will continually make regulatory updates as IRS guidance is confirmed. To learn more about Sunward’s IRA account options, visit sunward.org/IRAs.
* Exceptions include disabled or certain chronically ill beneficiaries, minors, beneficiaries who are within 10 years younger of the deceased owner, and those who’ve received certain annuitized payments before the SECURE Act was signed into law.
