Here are your articles for Monday, January 13, 2020
Is this email not displaying correctly?
View it in your browser .
Website Tax Services Consulting About Us Contact Us
Share Save

Retirement Plan Changes for 2020 – Are You Feeling Secure?


By Jeffrey Silverberg, CironeFriedberg, LLP

President Trump signed the Setting Every Community Up for Retirement Enhancement (“SECURE Act”) on December 20, 2019. These changes were effective January 1, 2020. The more significant changes made by the SECURE Act include the following:

  • Eliminates the age limit of 70½ for contributing to traditional IRAs. Under prior law, only contributions to Roth IRAs and 401(k)s had no age limit if you are still employed and had less than a 5% ownership in a company.
  • Elimination of the “stretch IRA” in calculating required minimum distributions (RMD) made to non-spouse beneficiaries for individuals that die after 2019. Under prior law non-spouse beneficiaries could establish an inherited IRA account and receive distributions over their life expectancy. Under the new law, RMDs are suspended in years 1-9. However, the entire remaining balance of the inherited IRA must be distributed in year 10 after an account owner passes away. If the inherited IRA is not owned by a trust, the beneficiary has the option to request distributions at any time. However, inherited IRAs held in trust could have restrictions on funds depending on the existing trust language. Some trust documents may limit beneficiary distributions to the RMD amount. Accordingly, distributions might not be allowed until year 10 in some circumstances. IRAs inherited by a spouse are not subject to this new rule.
  • Increases the age from 70½ to age 72 for individuals starting their RMD. The increase in age to 72 applies to individuals who have not attained age 70½ by December 31, 2019.
  • Requires employers to offer eligibility to employees to participate in an existing 401(k) plan if they work at least 500 hours for three consecutive years of service or a one-year service requirement of 1,000 hours.
  • Provides a safe harbor for plan sponsors in the selection of an annuity provider. Few plans offer annuities in part because of liability concerns in choosing a provider. The new rules would ease concerns and offer participants an income stream in retirement.

Please contact one of our representatives if you have any questions about the SECURE Act.

Share Save

Your Comments

CironeFriedberg, LLP
CironeFriedberg, LLP
24 Stony Hill Rd, Bethel, CT 06801
(203) 798-2721
6 Research Dr, Suite 450, Shelton, CT 06484
(203) 366-5876
Friend Me on Facebook
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to:

Mailing address: 24 Stony Hill Road, Bethel, CT 06801