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29 May 2020
Keith Raymond

How Does It Effect You?


The Setting Every Community Up for Retirement Enhancement Act, also known as the SECURE Act, was signed into law on Dec. 20 by President Donald Trump and went into effect in January 2020. The act includes many reforms that in principle could make saving for retirement more attainable for many Americans. The act includes significant provisions with the primary focus of preventing older Americans from outliving their assets and increasing participation.

Key provisions of the SECURE Act:

  • An increase in the required minimum distribution (RMD) age from 70-1/2 to 72. This allows for a slightly longer investment period in IRAs and defined contribution plans.
  • The age limit or the maximum age for traditional IRA contributions, which was 70-1/2, has been repealed. You can contribute if you are working and receiving income.
  • Starting in 2024, it allows long-term, part-time workers to participate in 401(k) plans.
  • Parents are eligible to withdraw up to $5,000 from an IRA, penalty-free, to cover childbirth or adoption-qualified expenses.
  • Parents are also eligible to withdraw up to $10,000 from 529 plans, penalty-free, to repay student loans.
  • Inherited retirement distributions must be fully withdrawn within 10 years.

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Insight details

Life & Health Insurance, Wealth Management
Subscription(s) required to access this Insight:
Insurance, >>Life/Annuities Insurance
Insight Format
Geographic Focus
North America