INFORMATION TO HELP KEEP YOU INFORMED.
|On December 20, 2019 the Secure Act was signed into law. Burgess & Associates,LLC. would like to provide you with information on how the Secure Act affects |
our clients and the steps we’re taking to help ensure a seamless experience.
Delayed Age for RMDs:
For anyone who turns 70.5 on or after January 1, 2020, the age for required
minimum distributions increased from age 70.5 to age 72. For anyone over age 72, payments from an employer plan may still be deferred until retirement.
Inherited IRA Distributions Rules
For decedents whose death occurred December 31, 2019 or prior, the inherited
IRA process will continue as normal. For decedents whose death occurs on or after
January 1, 2020, the Secure Act has required changes to contracts, forms and
processes. These changes may cause additional processing times for issuance of
inherited IRA’s for those who died on January 1, 2020 or after. If you have
questions regarding an inherited IRA, please contact our office at 417-379-2157
For inherited IRAs where the original owner dies on or after January 1, 2020,
beneficiaries will generally have to withdraw all assets from the inherited IRA
within 10 years following the death of the original owner. Previously they could
take distributions over their entire life expectancy.
Exceptions to the 10-year limit include assets left to a surviving spouse, a minor
child, a disabled or chronically ill individual, and beneficiaries who are no more
than 10 years younger than the original owner.
IRA Contributions Past Age 70.5
There is no age limit for contributions to traditional and Roth IRAs for 2020 and
future years. Contributions for prior years (including 2019 contributions made by
April 1, 2020) are not allowed if the owner was age 70.5 or older during the year.
Distributions for Birth or Adoption of a Child
Beginning January 1, 2020, contract owners may withdraw up to $5,000 of
qualified funds upon the birth or adoption of a child without incurring the
previous 10% penalty tax imposed by the IRS.
Beginning January 1, 2020, pension plans and 457(b) plans may allow in-service
distributions at age 59.5. Previously, pension plans did not allow in-service
distributions until age 62, and 457(b) plans did not allow in-service distributions
until age 70.5.
The Act has other provisions, including changes that make it easier for plans to
provide annuities, expand the automatic enrollment rules, expand credits for smallemployer plans, and allow distributions of lifetime income investments from
If you have any questions, please contact Burgess & Associates at 417-379-2157
Heather, Ginger and Wayne