How the SECURE ACT screwed everyone and why you should not be using a retirement account. More info here.
SECURE Act Summary
- Expands the ability to run multiple employer plans for plan years beginning after December 31, 2020
- Safe Harbor Rules Simplified for plan years beginning after December 31, 2019
- Long Term Part-time Workers permitted to participate in 401(k) plans, which applies generally to plan years beginning after December 31, 2020
- 3 consecutive 12-month periods the employee has at least 500 hours of service
- Repeal Maximum Age for Making IRA Contributions which applies to contributions made for taxable years beginning after December 31, 2019
- Increase Age for Required Minimum Distributions to 72
- Applies to distributions required to be made after December 31, 2019, with respect to individuals who attain age 7012 after such date
RMDs after Death under the Secure Act
- H.R. 1865 – Sec. 401 Modification of Required Minimum Distribution Rules for Designated Beneficiaries
- Basically, requires all IRAs and Qualified Plans to be distributed within 10 years of death
- The Senate version had a 5 year limit
RMDs after Death under the Secure Act
Exception to 10-year rule for certain beneficiaries:
- Surviving Spouse
- Children under the age of majority (but only until reach age of majority, then 10-year rule)
- Disabled
- Chronically ill
- Another individual who is not more than 10-years younger
