SECURE Act (Setting up Every Community for Retirement Enhancement) signed into law December 20, 2019 is the biggest piece of retirement plan legislation since the Pension Protection Act of 2006. The Act is designed to:

Encourage employees to save more for retirement by

• Repeal of age limitations for IRA contributions
• Moved the required beginning date for Defined Contribution Plan (includes 401(k) Plans, Profit Sharing Plans and IRAs) from 70 ½ to Age 72
• Make retirement savings available to more people by expanding 401(k) employee coverage to part-time employees working 500 hours annually for the past 3 years
• Requires lifetime income disclosures in addition to simply showing your account balance
• Makes it easier for your employer to offer lifetime income options

Encourage more businesses to offer a retirement plan to their employees

• Tax credit for retirement plan start-up costs
• Makes retirement plans affordable for small businesses

The Act also eliminates “Stretch” IRAs with certain exceptions which include a surviving spouse and disabled/chronically ill beneficiary. We do have some ideas for stretching the IRA wealth into the third generation. Contact Michael Schechner (michaels@slcinsure.com) for more information.