On December 20, 2019 President Trump signed the SECURE Act (Setting Every
Community Up for Retirement Enhancement Act of 2019). Effective
January 1, 2020, two widely applicable changes to Individual Retirement Accounts (IRAs) have been made:
1)
Seniors turning 70½ in 2020, can now wait
until the year they turn 72 years old before being forced to take taxable money
out of their IRA and other retirement investments. These are called RMDs
(Required Minimum Distributions).
2)
Beginning in 2020, seniors can continue to
make deductible contributions to their IRA accounts as long as they’re still
working and receiving earned income. Before 2020, taxpayer who turned 70½ lost
their right to deduct contributions to IRAs even though they were still
working.
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