The Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”) is a broad and wide-reaching bill that includes numerous provisions focused on increasing access to tax-advantaged accounts and preventing older individuals from outliving their assets.

The important take-aways include the following:

  • The Act increases the age at which retirement plan participants must take required minimum distributions, from 70 ½ to 72, while also allowing traditional IRA owners to make contributions indefinitely;
  • The Act requires that most non-spouse inheritors of an IRA structure the distributions such that the account is emptied within 10 years;
  • The Act allows tax-advantaged 529 accounts to be used for qualified student loan repayment, with a cap of $10,000 annually;
  • The Act encourages plan sponsors (employers) to offer annuities in workplace plans by reducing the sponsor’s liability if the insurer cannot meet its financial obligations; and
  • The Act makes it easier for small businesses to establish 401(k) accounts by increasing the cap under which employers can automatically enroll workers in “safe harbor” retirement plans, from 10% to 15% of wages.

In conclusion, the SECURE Act is a broad and wide-reaching bill that has a significant impact on the retirement situation of many Americans. At Chandler and Brown, Ltd. our knowledgeable estate planning attorneys would be happy to meet and discuss your personal situation, including the Act’s consequences for your small business or IRA assets. We will work together to determine the best plan in order to prepare you and your family for the future.

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