Uncle Sam giveth. And Uncle Sam taketh.
That’s one way to describe the essence of the SECURE Act which President Trump signed into law in December 2019.
On the taketh side of the ledger, the new eliminated the so-called “stretch” provision which allowed non-spouse beneficiaries of inherited IRAs and other retirement accounts to take distributions over their life expectancy and replaced it with a new provision. Under the new law, those who inherit IRAs in 2020 and beyond will have only 10 years to empty the account.
On the giveth side, older Americans who are working can continue to contribute to an IRA even after they turn 70½. And for many, the best part of all is this: IRA account owners don’t have start taking required minimum distributions (RMDs) until age 72. Under the old law, IRA account owners had to start taking RMDs at age 70½.
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