SECURED Act Passed as Part of the Further Consolidated Appropriations Act 2020
The last time the government passed sweeping retirement account legislation was the Pension Protection Act of 2006. This all changed with the approval of the the House and Senate approved the Further Consolidated Appropriations Act 2020, the Setting Every Community Up for Retirement Enhancement (SECURE) Act passed on December 20, 2019.
Here are the key items found in the SECURE Act as they pertain to solo 401k plans, IRAs and business financing 401k plans:
Here are the key items found in the SECURE Act as they pertain to solo 401k plans, IRAs and business financing 401k plans:
- Simplify the 401(k) safe harbor rules;
- allow long-term, part-time workers to participate in 401(k) plans;
- allow plans adopting by the filing due date to be treated as in effect as of the close of the year;
- Allow traditional IRA contributions past age 70 1/2;
- extend the current required minimum distribution requirements to age 72;
- the Act creates a penalty-free withdrawal from defined contribution plans, not to exceed $5,000, for childbirth and adoption expenses; and
- designated beneficiaries of IRAs and plans are required to draw down IRA and plan assets within 10 years of the death of the IRA owner or plan participant. However, this new rule does not apply to spouse beneficiaries. To learn more, VISIT HERE.