The Secure Act

“The Secure Act delivers major wins for American savers.” –statement from The Investment Company Institute


The Setting Every Community Up For Retirement Enhancement Act (SECURE) was passed into law on 12/20/2019. It’s the biggest retirement bill passed in over a decade.

Here’s a summary of a few of the key points of interest:

1) The Act pushed the RMD age to 72 from 70.5. RMD is the minimum age you have to start taking money out of your retirement accounts.

2) You can continue to make IRA contributions, no matter your age. Under the old rules you couldn’t make contributions if 70.5 of older.

3) Under old law, Inherited IRA’s allowed non spouse beneficiaries to withdraw money out over their life expectancy. This goes away with the SECURE Act.

4) A couple of new provisions that aren’t getting much press are

a) Penalty free withdrawals from 401K’s and IRA’s for costs of adoption or having a child. (up to $5,000 per person. Looks like a husband and wife could each do $5,000)

b) can use $10,000 from 529 plans to make student loan payments.

Here’s a summary from TD Ameritrade with a little more detail: Retirement Changes Coming, Courtesy of the SECURE Act: 5 Things You Should Know