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The SECURE Act Makes Significant changes to IRAs and Retirement Accounts

The SECURE (Setting Every Community Up for Retirement Enhancement) Act, was signed into law on December 20, and makes significant changes to IRAs and other retirement plans including:

  • Encouraging more small businesses to offer retirement plans and expanding availability of these plans to employees.
  • Increasing the beginning age for Required Minimum Distributions (RMDs) from 70½ to 72 for individuals turning 70½ in 2020 and later.
  • Removing the age limit for Traditional IRA contributions (previously, there was a restriction at the age of 70½).
  • Altering inherited (stretch) IRA distribution calculations and schedules for non-spouse beneficiaries for any new inherited situations starting in 2020.

In sum, this is the most comprehensive retirement savings bill since the Pension Protection Act of 2006 and becomes effective on January 1, 2020.

Investors should seek guidance from their Advisors to determine what impact, if any, this new legislation will have on their retirement plans.


For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither First Allied Securities, Inc. nor any of its representatives may give legal or tax advice.