The SECURE Act (Setting Every Community Up for Retirement Enhancement) was passed and signed into law by the President. The new law includes various provisions designed to make saving for retirement easier for Americans. The following are few noteworthy changes effective January 1, 2020.
The age for required minimum distributions from qualified retirement accounts (ex. 401ks and IRAs) will increase from 70 1/2 to 72. The new law also repeals the rule that does not allow IRA contributions by people over age 70 1/2.
Beneficiaries of qualified accounts must distribute the entire balance by the end of the 10th calendar year following the year of the death of the account owner. The new rule does not apply to the spouse or minor children of the account owner or disabled beneficiaries.
529 plan funds may be used to pay for up to $10,000 of qualified student loan repayments.