On December 20, 2019, the current U.S. administration passed the SECURE (Setting Every Community Up for Retirement Enhancement) Act, effective January 1, 2020. The law provides needed breathing space for those nearing retirement age who’ve yet to fill their retirement kitties. It does this by removing age restrictions on contributions to IRAs and other retirement interests and extending the required minimum distribution age from 70 1/2 to 72. ***DISCLAIMER: We’re not financial advisors so do not act on the above information before contacting an advisor.***
However, the issue that estate planning lawyers must contend with is the removal of the “stretch” IRA, so trusts that used this feature to create legacies for younger beneficiaries must be amended.
