The Good News and Really Bad News for IRA Owners Under the SECURE Act – Next Steps for IRA Providers
January 15, 2020 by Morgan Lewis, Sariyah Buchanan, William Marx, Vivian McCardell
The recently enacted Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) makes significant changes to individual retirement accounts and individual retirement annuities (IRAs). These important changes generally start in 2020 and touch just about every IRA provider and IRA owner. These changes will have significant effects on retirement, estate, and tax plans that use IRAs.
GOOD NEWS FOR SEPTUAGENARIANS
Age Limit for Annual Traditional IRA Contributions Eliminated With Related Qualified Charitable Distribution Reduction
Beginning with the 2020 tax year, the SECURE Act eliminates the 70½ age limit for making annual contributions to Traditional IRAs. However, beginning with contributions and distributions made or taken in 2020, the SECURE Act reduces the IRA qualified charitable distributions to coordinate with the new post-age 70½ annual contributions.
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