Broker Check

Announcement December 2019 - The Secure Act


The Setting Every Community Up for Retirement Enhancement Act, better known as the SECURE Act, was signed into law on Friday, December 20 and a few changes become effective on January 1, 2020.  

Although the Act provides for new options for funding the future retirement of our younger clients, these are the major changes created by the new law that retirement age clients need to be aware of:

  • Required Minimum Distributions (RMDs) Will Start at Age 72, not 70½
    If you are currently receiving RMDs (or should be) because you are over age 70½, you must continue taking these RMDs. Only those who will turn 70½ in 2020 or later may wait until age 72 to begin taking required distributions.


  • Clients Can Contribute to Their Traditional IRA After Age 70½
    Beginning in the 2020 tax year, the new law will allow clients to contribute to their traditional IRA in the year they turn 70½ and beyond, provided they have earned income. They still may not make 2019 (prior year) traditional IRA contributions if they are over 70 ½.


  • Inherited Retirement Accounts
    Upon death of the account owner, distributions to individual beneficiaries must be made within 10 years. There are exceptions for spouses, disabled individuals, and individuals not more than 10 years younger than the account owner. Minor children who are beneficiaries of IRA accounts also have a special exception to the 10-year rule, but only until they reach the age of majority. 

Beneficiaries of trusts holding IRA accounts need to pay special attention to the new rules and they need to discuss their options with their tax advisors.

With these changes, the idea of doing a Roth conversion each year becomes even more important.  If you have a sizeable Traditional IRA account balance, the changes could create larger- than- planned- for distributions each year and have significant negative tax implications for future generations.

There are many more aspects and provisions to the new law. Please see your tax advisor for more information and call us if you want our help in facilitating any changes to your retirement accounts.


With best wishes for a prosperous New Year!


Intelligent Investment Management, LLP

 James Brost CFP®, APMA®, AWMA®