The official title is The Setting Every Community Up for Retirement Enhancement Act. Wow, where do they come up with these names? So, the acronym is SECURE - feels a little bit more like wrapping up in Linus's blanket. Let's see what's under the blanket.
First of all, the age that you must start receiving Required Minimum Distributions (RMDs) has been extended to age 72. This applies to those taxpayers that will be age 72 after 2019.
There are new rules for IRA distributions if you inherit them from someone that passes after 2019. For non-spouse beneficiaries, you can no longer take these distributions over your own life expectancy. You must now take the distribution (and pay the taxes) within ten years following the death of the original account holder.
Prior law disallowed additional IRA contributions for working taxpayers after age 70. This has restriction has been removed.
These are only a few highlights of the SECURE Act...but the ones that we believe will have the most impact on our clients. The changes reflect the fact that taxpayers are living and working longer. Let us know if we can assist you in applying these rules to your situation.