January 6, 2020

SECURE Act - Basic Information

On December 17, as part of a broader 2020 fiscal year appropriations bill, the U.S. Senate voted in favor of the Setting Every Community Up for Retirement Enhancement (SECURE) Act.  President Trump signed it into law on December 20.  Here are some of the major changes under that Act:

·        Retirement Plan sponsors can now increase the automatic enrollment rate to 6% from 3% under current law.

·        Retirement plans can offer annuity options as part of the investments.

·        The age limit for traditional IRA contributions has been lifted so people working beyond 70 1/2 can still contribute to a qualified plan.

·        Required minimum distribution age has been raised to 72 if you reach 70 1/2 in 2020.

·        There’s a new exception to the 10% penalty roll for birth or adoption.

·        The new law allows for non-tuition fellowship and stipend payments to be treated as compensation to qualify for an IRA contribution.

·        In 2020, we will be saying goodbye to one of our most valued legacy planning tools--the stretch IRA. Needless to say, that will create a lot of additional planning needs for 2020 and beyond.

Securities offered through Triad Advisors, LLC, Member FINRA/SIPC

Advisory Services offered through AMJ Financial Wealth Management LLC

AMJ Financial Wealth Management LLC is not affiliated with Triad Advisors LLC

The information provided for informational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products or investment advisory services. All information, views, opinions, and estimates are subject to change or correction without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit to your financial status, risk and return preferences.

Securities offered through Triad Advisors, LLC, Member FINRA / SIPC 

Investment advisory services offered through AMJ Financial Wealth Management LLC

AMJ Financial Wealth Management LLC is not affiliated with Triad Advisors, LLC
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