How Does the SECURE Act Affect Your Retirement Plans?

Feb 18, 2020

The SECURE Act was signed into law by President Trump on December 20, 2019. The bill was created to help Americans save for retirement. The following are key provisions related to retirement planning.

Elimination of the Maximum Age for Contributions to Traditional IRAs – Previously, contributions were only allowed for taxpayers who were under age 70½ during the year. Starting January 1, 2020, you can make IRA contributions after age 70½ as long as you are still working and have earned income. There is no age limit. See the table below for contribution limits and deadlines. This change in the law is in line with the rules for Roth IRAs where there has never been an age restriction for contributions. Note that if you were 70½ or older as of December 31, 2019, you would not be able to make a contribution for tax year 2019, but would be able to for tax year 2020 and thereafter.