The SECURE Act, officially titled “Setting Every Community Up for Retirement Enhancement,” was passed in December of 2019 affecting many changes intended to strengthen retirement security across the nation. There are a total of 29 different provisions within the Act, but this short video focuses specifically on the changes made to Required Minimum Distributions, or RMDs.
Prior to the SECURE Act, the government required individuals with pre-tax investments to begin taking distributions by April 1 of the year after they turn 70 ½. The SECURE Act has raised that to age 72. This is especially good news for those folks who do not need to make withdrawals on their investments as it buys them an additional 18 months to leave their money in the market.
Changes to how RMDs are calculated have remained the same… for now. The IRS has proposed changes to the RMD life expectancy table that could possibly begin taking effect in 2021. Stay tuned here at Asset Strategies for more information.
Do you have questions about the SECURE Act and how it will impact your retirement savings? Contact us and schedule a free, no-obligation consultation with one of our financial advisors.
