Until recently, retired owners of 401(k), traditional IRA and similar accounts had to begin taking required minimum distributions (RMDs) when they reached age 70 1/2. But the passage of the SECURE Act means:
- You can wait until age 72 to begin taking RMDs — but only if you reach 70 1/2 after 2019. If you turn 70 1/2 before 2020, take RMDs by this April 1.
- There are no more age restrictions on traditional IRA contributions. So you can contribute money after the age of 70 1/2.
- Stretch IRA strategies may no longer be effective. Non-spouse beneficiaries must exhaust inherited accounts within 10 years instead of taking RMDs over their expected lifetimes.
If you are or maybe effected by this change, or even would like to consult the Performance Group, please contact us today!