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The New Benefits of the Secure Act


I would have to say that the new retirement legislation, the Secure Act, is largely underwhelming. However, there are some things that you need to know. So lets take a moment to go through the main benefits.


  1. They removed the age limit on contributing to an IRA. It was 70 1/2. Now you can contribute until death.  

  2. If you turn 70 1/2 starting in 2020 or later, you don't have to begin your required minimum distribution until age 72. 1 1/2 years delay is nothing to get excited about. I guess any delay is good.

  3. The new act will allow new parents whether a birth or adoption to take a penalty free withdrawal up to $5,000 from an IRA to help with expenses. Who comes up with these ideas? You still have to pay the income tax. It would seem if you were passing a bill to help the retirement crisis, you wouldn't make it easier to withdraw money from your retirement.  

  4. If you want to use your 529 plan to pay off student loans, you can use up to $10,000 to pay tax free for student loan debt. How about remove the limit? If they had money left over in a 529 plan, why is there student loan debt? It really does not make any sense.  

  5. They eliminated the stretch IRA. If you inherited an IRA from a parent, you could keep it in the IRA as long as you took a little amount out each year for the rest of your life. Not any more! Now thanks to the secure act you have up to 10 years to take the entire account out and pay taxes on it.  


The secure act also establishes ways that small business can set up retirement plans. IT DOES NOTHING TO SOLVE THE SOCIAL SECURITY PROBLEM IN AMERICA. This is just another swing and a miss for politicians. The social security time bomb is ticking.....