The SECURE Act went into effect 1/1/2020 and has changed the RMD (required minimum distribution) age to 72, as well as allows IRA owners to make contribution deposits after age 70.5.
On December 20th, 2019, provisions to the SECURE Act (Setting Every Community Up for Retirement Enhancement) passed, which has effected two major areas related to Traditional IRA accounts.
- The RMD age increased from 70.5 to 72 years of age.
- This change does not impact the RMD for individuals who turned age 70.5 in 2019 or earlier. These individuals must continue to receive RMD payments as they did before these new regulations passed.
- Traditional IRA owners can continue to make contributions after age 70.5.
- As long the IRA owner or spouse has earned income, they can continue to contribute to their Traditional IRA account.
- This new law begins in the 2020 tax year, so IRA owners cannot make 2019 (prior year) contributions if they are over 70.5 years of age.
If you have other questions about IRAs, contact Abri’s IRA specialist or your tax adviser.
