SECURE ACT OF 2019 BY HILLS BANK WEALTH MANAGEMENT GROUP PART 1 OF 3
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was signed into law. The SECURE Act, effective beginning January 1, 2020, will significantly impact individual retirement account (IRA) owners and other consumers. This article is part one of a three-part series focused on providing a general overview of the law’s changes. Part one outlines the changes to required minimum distributions (RMDs) and contributions. Required Minimum Distributions: Old Law: Prior to the SECURE Act, IRA owners were required to begin taking RMDs the year they turned 70 1 / 2 . This remains the rule for anyone that turned age 70 1 / 2 prior to December 31, 2019. In other words, account owners born before July 1, 1949 begin taking RMDs by no later than April 1 following the year they attain age 70 1 / 2 . New Law: Beginning January 1, 2020 IRA owners are now eligible to begin taking their required minimum distributions starting at age 72. In other words, account owners born after June 30, 1949 must begin taking RMDs by no later than April 1 the year following the year they turn age 72.
24
Friends Club News
Made with FlippingBook - Online catalogs