SECURE Act - What Would It Mean
As we prepare for the holidays, we also want to update you on the SECURE Act, which has now been passed from Congress to the president for his signature. The SECURE Act makes some material changes to retirement planning, among the biggest being,
1. Changes the age for Required Minimum Distributions (RMDs) to 72 from 70.5;
2. Increases the tax credit for business owners who create new retirement plans from a $500 to a $5,000 maximum;
3. Reduces the complexity for business owners to pool together to create Multiple Employer Plans (MEPs), which can reduce overhead, administration and fees; and
4. Require that non-spouse beneficiaries of retirement plans distribute all money from an inherited account by the 10th anniversary of the owner's death.
The president is expected to sign the SECURE Act into law as part of the larger government spending bill and as we get more specifics on regulations, we will be reaching out to clients to discuss their personal planning in response to these changes.
Please let us know if you have any questions and Happy Holidays.