Top 10 things you need to know about the SECURE Act
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THE TOP 10 THINGS YOU NEED TO KNOW ABOUT THE NEW SECURE ACT AND YOUR RETIREMENT ACCOUNT

By Sarah Brenner, JD
IRA Analyst

Sarah Brenner

On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. This new law includes some big changes for your retirement account. Here are the top 10 things you need to know:

1. No more age limits for traditional IRA contributions. Beginning in 2020, the new law eliminates the age limit for traditional IRA contributions (formerly 70 ½).

2. Required minimum distributions (RMDs) can start a little later. The new law raises the age for beginning RMDs to 72 for all retirement accounts subject to RMDs. IRA owners age 70 ½ in 2020 catch a break and will not have to take their first RMD for 2020.

3. The age for qualified charitable distributions (QCDs) remains the same. QCDs can still be done at age 70 ½ despite the new rule delaying RMDs until age 72.

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Q: When do the Updated Uniform Lifetime Table & Single Life Table under 401(a)(9) go into effect for 2020?

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Q: I turn 70 1/2 in 2020. Since I do not have to take a required minimum distribution (RMD), how much can I do in a qualified charitable distribution (QCD) this year?

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Q: If my son inherits my Roth IRA, I understand he now needs to withdraw the full amount over a 10 year period. It also appears that any withdrawal by him – whether in year 1, equally over the 10 years, or all in year 10 – is tax-free. What if he decides to take nothing out the first 9 years, and then takes out the full original inherited amount in year 10? If during those 10 years the account increased, can he keep the gains from the Roth IRA, as long as he withdraws the original amount he inherited?

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