Q: The SECURE Act rolled out in 2020, does it affect me?
A: It depends. The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law December 2019, and put into practice in 2020. Here some key provisions from the SECURE Act that may apply to you:
- Long-term, part-time workers may now qualify to join their company’s 401(k) plan
- Small-business owners can receive a tax credit of up to $5,000 for starting a retirement plan
- Small-business owners should find it easier to join together to offer defined contribution retirement plans
- With few exceptions, inherited IRA distributions must now be fully taken within 10 years
- Upon the birth or adoption of a child, you can withdraw up to $5,000 per parent, penalty-free, from your retirement plan
- 529 funds can be used to pay down student loan debt, in an amount up to $10,000
- You can make contributions to traditional IRAs past age 70½; and,
- Required minimum distributions (RMDs) for traditional IRAs now begin at age 72.
Of course, there are details and nuances in these key provisions that will further determine whether the SECURE Act affects you. If it does, the impacts are generally favorable, since the SECURE Act is intended to assist qualified plan and retirement account owners with retirement.
Alpine Bank Wealth Management works with its clients to determine whether the SECURE Act applies to their retirement plan.
Contact Jesse Bopp, J.D., to learn all that Alpine Bank Wealth Management can do for you. Call Jesse at 877-808-7878, or email him here.