Changes in Your Retirement with the SECURE Act.

The SECURE Act is an acronym for 'Setting Every Community Up for Retirement'. Highlights include:
 

  • Makes it easier for small businesses to set up retirement accounts for employees that should be less expensive and easier to manage.

  • Not worked out yet, but it will encourage employers to include more annuities in a 401k plan that would or could generate lifetime income (similar to a pension). Transferable with the employee

  • Part time workers will be eligible to participate in employer retirement bills under the plan (1,000 hours a year or three consecutive years of 500 hours)

  • Pushes back the RMD age to 72. (If you turn 70.2 AFTER December 31, 2019).

  • Allows 529 accounts to be used to pay off student loans

  • Penalty free $5k withdrawal from a 401k for adoption costs

  • Removal of stretch IRAs. Any inherited IRA must be distributed within ten years now and no longer over a lifetime. 

QUESTIONS about any of these changes, do not hesitate to reach out at 720-470-7250 or odonnell.associates12@gmail.com

APRIL 21, 2021 UPDATE  - Click Here - IRS Interprets New Law

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