What’s the SECURE Act?
Setting Every Community Up for Retirement Enhancement Act, commonly known as the SECURE Act, makes it easier to save for retirement. It also makes retirement plans more accessible to more people. Most changes based on the new law take effect January 1, 2020, but some won’t be in place for another year or more.
A quick SECURE Act summary:
- If you turn 70½ in 2020 or later, you can stay invested in your Individual Retirement Accounts (IRAs) or defined contribution plan (DC) account longer because the age for required minimum distributions (RMDs) is now 72.
- You can continue to contribute to IRAs, regardless of age, if you’re still working and receiving earned income.
- If you inherit money from an IRA or 401(k) plan (from someone other than a spouse), you’ll have to withdraw the full amount within 10 years.
- Starting in 2024, you can start saving in a 401(k) plan if you’re a long-term, part-time employee.
- You can withdraw up to $5,000 from an IRA, penalty-free, to cover childbirth or adoption expenses. You may be able to do the same from a retirement plan.
- You can withdraw up to $10,000 from 529 plans to repay student loans for a beneficiary.
Please find resources below from our carrier partner, Equitable (formerly AXA).
If you have any questions, need additional materials or would like assistance, please feel free to reach out to any Dixon Wells office.