From the desk of Dean Mailhes, CFA

Secure Act-

On December 20, 2019 the Secure Act was signed into law with the goal of increasing retirement savings. Here are some of the major changes:

Individuals of any age can make IRA contributions if they have earned income. Previously this was not available past age 70.

Required Distributions from IRAs and retirement plans will now start at age 72 rather than 70½.

Direct Charitable Contributions from your IRA can still be done at age 70 1/2 even though required distributions start at 72.

529 distributions can be made to pay student loans, up to a $10,000 limit.

Non-Spouse beneficiaries of an IRA or retirement plan will have 10 years to take all distributions. Previously this could be done over their lifetime. This provision is clearly a negative for non-spouse beneficiaries.

Also, many changes to retirement plans were made with the goal of making it easier for employers to offer plans and to expand certain investment options for participants.

We will be reviewing these new provisions and their effect on our clients. In the meantime, please let us know if you have any questions.