SECURE Act Summary
Passed on December 20, 2019, the SECURE Act has a number of provisions that may impact your financial planning. Below we have listed a few that will have the biggest impact:
- IRA Required Minimum Distributions are now pushed back to age 72 for anyone who has not already started taking distributions from their IRA
- IRA accounts can now be funded past age 70 for those who are still working and wanting to add to their retirement savings accounts.
- IRA distributions can now be taken penalty-free for birth or adoption expenses.
- College 529 Savings Plans can be used to pay up to $10,000 of student loans.
- A minor’s unearned (i.e. investment) income is again taxable at their parents’ marginal income tax rate. Following the 2018 Tax Cuts and Jobs Act, the income was taxed at the Trust Income Tax rates. This returns the taxation to the way it was in 2017 and prior years.
- Tax credits are now available for small businesses that implement retirement savings plans for their employees.
Please contact us if you would like to discuss how these new rules impact your specific situation. We look forward to helping you optimize your planning.