What You Should Know About the SECURE Act of 2020

2021-12-13T16:00:35+00:00

Congress has passed a bipartisan appropriations bill. In the contents of this spending bill is a piece of legislation known as the Setting Every Community Up for Retirement Enhancement Act (SECURE), the first significant change in retirement legislation since the Pension Protection Act in 2006. The President signed the Act into law on December 20, and its effective date was January 1, 2020. The impact of the SECURE Act to some retirees, near-retirees, and their future beneficiaries is profound, and it is imperative to schedule a review of your retirement, estate, and trust plans. Failure to act on the changes brought forward by the SECURE Act can create substantial tax burdens for some beneficiaries and even the possibility that they become locked out of their inheritance for a decade. One of the most important provisions of the SECURE Act to understand is the removal of the stretch IRA required minimum distribution (stretch RMD). In essence, [...]