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the age at which required minimum distributions (RMDs) must begin is increased. Instead of beginning RMDs at 70½, RMDs don’t have to begin until age 72. The new rule doesn’t take effect immediately, so check out the details.
Employer retirement plans, such as 401(k)s, will include annuity options. That is, the law requires all 401(k) plans to include a lifetime guaranteed annuity as an option.
Longtime part-time employees must be allowed to participate in plans.
IRAs- Another provision allows more people to contribute to traditional IRAs. The current rule is that contributions to traditional IRAs can’t be made after age 70½. The SECURE Act repeals the age limit. You’ll be able to make contributions to a traditional IRA at any age, which has been the rule for Roth IRAs.
The SECURE Act ends the Stretch IRA. People who inherit IRAs will no longer be able to extend distributions over their life expectancies. Instead, the entire IRA must be distributed within 10 years in most cases. This rule applies to both traditional IRAs and Roth IRAs as well as 401(k)s.
There are exceptions. The anti-Stretch IRA rule doesn’t apply when the IRA is inherited by a surviving spouse, a disabled person, a chronically ill person, a minor child or someone fewer than 10 years younger than the original IRA owner.
Dan
