The RDFA Release: SECURE Act

John K. Ritter, CFP, CFS
You may have recently heard of the SECURE Act, which was passed into law this past Friday, December 20th.  Here are some of the major changes that the Setting Every Community Up for Retirement Enhancement Act will make:
  • Eliminating the Stretch IRA- Inherited IRA’s will now have to be drained of assets within 10  years, unless a spouse is the beneficiary.
  • The Required Minimum Distribution (RMD) age for IRA’s will be increased to 72 years old from 70.5 years old.
    • If you turned 70.5 in 2019 you will still need to take your RMD by April 2020, but if you turn 70.5 in 2020 or later you can wait till the year you turn 72 to begin taking your RMD’s.
  • Annuities will now be easily offered as investment options within  401(k) plans since the insurance companies will now hold the fiduciary responsibilities instead of the employer. 
  • Many part-time workers are now eligible for employer sponsored retirement plans.  
    • You must have 3 consecutive years working 500 to 1000 hours at that company to be eligible.
  • 529 savings accounts can now be used for many apprenticeship programs as well as to pay off qualified student loan debt (up to $10,000)
  • Penalty-free withdrawals from qualified retirement accounts are now allowed for costs associated with having a child or adoption (up to $5,000)
For a full summary from the House Ways and Means Committee, click on the following link:
Should you have any questions about this, or anything else, don't hesitate to let us know.  Happy Holidays!!
The RDFA Release: Talking With Family About Money

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Ritter Daniher Financial Advisory, LLC
7661 Beechmont Avenue, Suite 200
Cincinnati, OH 45255
Phone: 513.233.0715
Fax: 513-233-0718