If you haven’t already heard the news, we have some new legislation that impacts our collective retirement planning efforts. But I’m not sure it will leave you feeling more secure about retirement.
Called the SECURE Act (where SECURE stands for “Setting Every Community Up for Retirement Enhancement”), this just-signed legislation includes a lot of moving parts having to do with everything from 401k plans to IRA beneficiaries to Required Minimum Distributions.
But rather than drag you point-by-point through the legislation and what it means to you and your retirement, I’ll instead point to a few articles published in just the last few days that provide a good overview and give you some perspective on what’s going on.
First, here’s a MarketWatch article from Ali Malito.
Here’s another from Investopedia.
And finally, here’s coverage from Jeff Levine.
Some Highlights of the SECURE Act
A couple of things that really stood out for me:
- No more stretch IRAs for non-spouse beneficiaries (with a couple of exceptions)
- If you turn 70 1/2 in 2020 or later, you don’t have to start Required Minimum Distributions until you reach age 72
- New exceptions to 10% early withdrawal penalty for childbirth or adoption expenses
- You can now contribute to a traditional IRA beyond age 70 1/2 (if eligible)
- Annuity contracts will likely become more prevalent in 401k and other company retirement plans (I’m not a fan of this. At all.)
There’s much more to this legislation, but between the bullet points and article links above, hopefully this will give you a flavor for what’s going on.
And what might impact you.
If you have any questions about this or how it might factor into your retirement planning and decision making in 2020 and beyond, please let me know. I’d be happy to have that discussion with you.
And stay tuned for more on retirement planning and all its moving parts going forward as this will be an increased focus for me as it seems to be an increased focus for many of my clients and folks I get introduced to.
P.S. – Retirement is dead. Long live retirement.