On December 20, 2019, President Trump signed a spending bill which had attached to it a piece of legislation that much of the estate, tax and financial world has been anxiously awaiting for an update on called the “Setting Every Community Up for Retirement Enhancement Act of 2019” (or “SECURE Act”). The SECURE Act went into effect January 1st, 2020 and has many new provisions that may impact retirement planning for you.
The most important provision of the SECURE Act for many of our clients includes the elimination of the stretch IRA in favor of the 10-year rule, a change to increase the starting age for required minimum distributions to age 72 and elimination of the maximum year in which you may make contributions to your IRA. These changes may require a change to your estate planning documents in the event your IRA plays an important role in your estate plan you may need to update your estate planning documents.
