Below is a direct quote from the MarketWatch article published 1/8/2020.
“President Trump signed the SECURE Act this week as part of the government’s spending bill and it will inevitably affect most retirement savers, for better or worse.
The new law takes effect Jan. 1 and changes some rules about retirement savings.
The SECURE legislation — which stands for “Setting Every Community Up for Retirement Enhancement” — puts into place numerous provisions intended to strengthen retirement security across the country.
Part of the bill addresses the grim outlook for many workers who don’t have access to workplace retirement accounts.
It offers small businesses tax incentives to set up automatic enrollment in retirement plans for its workers, or allows them to join multiple employer plans, where they can band together with other companies to offer retirement accounts to their employees in the first place. The bill also eliminates the maximum age cap for contributions to traditional individual retirement accounts.”
Two observations and an offer, regarding the SECURE Act:
- If you are a small business owner with employees, there are some nice incentives to start a 401k plan.
- If you turn 70 ½ in 2020 or later, you don’t have to take RMD’s until you turn age 72.
If you would like to have a deeper dialogue with Advisor, Edwin McKnight, regarding these or other aspects of the SECURE Act, please reach out to us below.