President Trump signed the Secure Act in December 2019 which made several key changes in retirement law. The 3 most significant changes are the following:
1. Non spouse beneficiaries have to withdraw all of the funds from an inherited IRA over a ten year period instead of over their life expectancy. This change will accelerate taxable income for many taxpayers.
2. Required minimum distributions from regular IRA's won't have to start until age 72 instead of age 70 and 1/2. This is a very popular change.
3. The age limit for regular IRA contributions has been waived. It used to be you couldn't make contributions after you reached 70 and 1/2. Your contribution is still limited by the earned income of you and your spouse. Also your contribution may not be deductible if your adjusted gross income is over a certain amount. In my opinion you should make the maximum contribution every year.
No comments:
Post a Comment