SECURE ACT
Modification to Required Minimum Distributions (RMDs)
As a result of the SECURE ACT, the government no longer requires individuals with defined contribution or benefit plans to taking distributions after they turn 70½. Instead, the SECURE ACT raises the mandatory distribution age to 72 years old.Modification to IRA Contributions Prior to the SECURE ACT, people were prohibited from making contributions to an IRA after they reached the age of 70 ½ years old. As a result of the SECURE ACT,people are now allowed to make contributions to an IRA, irrespective of age, as long as they continue to earn an income.

Qualified Charitable Contributions
In part because the SECURE ACT permits contributions to an IRA after the age of 70 ½, the amounts permitted for annual qualified distributions has been reduced by the amount equal to the IRA contributions that are made after age 70½.
The 10-Year Distribution Rule
Another change stemming from the SECURE ACT is found in the 10-year distribution rule. As a result of the SECURE ACT, most beneficiaries of retirement plans, are required to distribute all assets within IRAs and/or Roth IRAs within 10 years of the date you die. As with most laws passed by the government, there are exceptions to this mandate.
Of the exceptions, the most notable exceptions are:
- A surviving spouse is not required to receive distribution within 10 years;
- A beneficiary under the age of majority is required to receive distribution within 10 years of the age of majority;
- A beneficiary that is disabled is not required to receive distribution within 10 years;
- A beneficiary that suffers from a chronic illness is not required to receive distribution within 10 years; and
- An beneficiary that is no more than 10 years younger than the person that dies is not required to receive distribution within 10 years.
- Impact on 401(k)s
As a result of the SECURE ACT, employers offering 401(k) plans to employees are now required to offer them to part-time employees after they have worked at least 500 hours for a specified period of time.
PLAN FOR THE BEST INTERESTS OF YOUR FAMILY
Without a proper estate plan, upon your death, the government will make decisions related to your estate. Contact The Estate Planning Law Firm at (714) 805-9229 for your Estate Plan needs.