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How the SECURE Act May Impact Your Retirement

February 05, 2020

The retirement landscape is constantly in flux as Americans adapt to the ever-changing financial environment. On December 20, 2019, President Donald Trump signed the Setting Every Community Up for Retirement Enhancement (SECURE) Act as an effort to reshape and modernize our country’s retirement system. With most of its provisions effective this year, here are some key influencing factors that this new legislation could have on your retirement:1

  • Inherited IRA distributions must be taken within 10 years. Prior to 2020, if you inherited an IRA or 401(k), you could “stretch” your distributions over your lifetime. Under the new law, “stretch” IRAs now loses its flexibility and are required to be withdrawn within 10 years following the death of the account holder.
  • Required minimum distributions (RMDs) age increased to 72 from 70 ½, effective to those reaching age 70 ½ after December 31, 2019. Americans are working longer and can now defer withdrawing until age 72. If you turned 70 ½ last year and have already began withdrawals, the new rule does not impact you.
  • No more age restrictions on IRA contributions. With Americans living longer and working past the traditional retirement age, they’re now able to contribute indefinitely. This means you can continue contributing to your traditional IRA past age 70 ½ as long as you’re still earning income.
  • Long-term part-time workers can now participate in 401(k) plans. The new act expands access allowing part-timers who have worked 500 hours at the job over three consecutive years to be participants in 401(k) plans.

The SECURE Act is widely considered to be the biggest set of retirement reforms in more than a decade. As rules on retirement changes, your approach to retirement planning should too. We’re a team of professionals dedicated to client results. Reach out to us today and let us be your source for knowledge and guidance through the many changes that may affect your financial future.


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

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