What is the Secure Act and How Will it Affect Your Retirement?
The Secure Act, was approved in the Senate on December 19th, 2019 and signed into law on December 20th, 2019 by President Donald Trump. The bill includes significant provisions aimed at increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets.
The Secure Act changes a number of rules related to tax-advantaged retirement accounts. Here is some of what it will do:
. Makes it easier for small business owners to set up "safe harbor" retirement plans that are less expensive and easier to administer.
. Many part-time workers will be eligible to participate in an employer retirement plan.
. The Act changes the age at which retirement plan participants need to take required minimum distributions (RMDs), from age 70 1/2 to age 72, and allows traditional IRA owners to keep making contributions indefinitely.
. The Act allows 401(k) plans to offer annuities.
. Encourage plan sponsors to include annuities as an option in workplace plans by reducing their liability if the insurer can't meet its financial obligations.
The SECURE ACT means that now more than ever, good advice is essential. Our office will guide you through all the rules and ensure you are best positioned to take advantage of the breaks while avoiding the pitfalls.