Passed in December 2019, the SECURE Act changed several retirement plan provisions for both individuals and businesses.

  • The elimination of the “stretch” provisions for most non-spouse beneficiaries of IRAs and defined contribution plans (like a 401(k)) was perhaps the most significant and publicized change that was brought about by the SECURE Act.
  • The Act provides for a later starting date for required minimum distributions (RMDs) from retirement accounts, up to 72 from 70½.
  • In addition to the individual retirement updates, the SECURE Act also focuses on small businesses. 

The Setting Every Community Up for Retirement Enhancement (SECURE) Act (the Act) was signed into law December 20, 2019, with many of the provisions of the Act going into effect on January 1, 2020. The Act created major changes to the retirement landscape in an attempt to modernize the country’s retirement system. 

There are also other non-retirement planning changes and updates provided in the Act. This article discusses some of the more significant changes that affect many individuals and business owners, and some planning strategies that might be considered in light of the legislation.

Please see important disclosures at the end of the article.


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